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Margaret Walker Is The Independent Director of Methanex Corporation (TSE:MX) And They Just Spent US$344k On Shares

Simply Wall St
·3 mins read

Investors who take an interest in Methanex Corporation (TSE:MX) should definitely note that the Independent Director, Margaret Walker, recently paid CA$42.97 per share to buy CA$344k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 533%.

View our latest analysis for Methanex

Methanex Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President John Floren bought CA$1.5m worth of shares at a price of CA$45.65 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$41.81). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid CA$4.2m for 85.97k shares. On the other hand they divested 9576 shares, for CA$544k. In total, Methanex insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSX:MX Recent Insider Trading, February 4th 2020
TSX:MX Recent Insider Trading, February 4th 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Methanex

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Methanex insiders own 0.9% of the company, worth about CA$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Methanex Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Methanex we think they are probably pretty confident of a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Methanex.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.