Positive Signs As Multiple Insiders Buy Made Tech Group Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Made Tech Group Plc's (LON:MTEC) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Made Tech Group
The Last 12 Months Of Insider Transactions At Made Tech Group
Over the last year, we can see that the biggest insider purchase was by Founder Rory MacDonald for UK£154k worth of shares, at about UK£0.18 per share. That means that even when the share price was higher than UK£0.098 (the recent price), an insider wanted to purchase shares. 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.
While Made Tech Group insiders bought shares during the last year, they didn't sell. They paid about UK£0.15 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Made Tech Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Made Tech Group Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Made Tech Group. COO & Executive Director Christopher Blackburn bought UK£32k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Insider Ownership Of Made Tech Group
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. Made Tech Group insiders own about UK£6.9m worth of shares (which is 47% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Made Tech Group Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Made Tech Group insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Made Tech Group. Our analysis shows 2 warning signs for Made Tech Group (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.
But note: Made Tech Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
