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Possible turnaround for MAV Beauty Brands Inc. (TSE:MAV) insiders, still down US$425k after a US$1.1m shopping spree

Insiders who purchased US$1.1m worth of MAV Beauty Brands Inc. (TSE:MAV) shares over the past year recouped some of their losses after price gained 12% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$425k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for MAV Beauty Brands

The Last 12 Months Of Insider Transactions At MAV Beauty Brands

Over the last year, we can see that the biggest insider purchase was by CEO & President Serge Jureidini for CA$684k worth of shares, at about CA$1.40 per share. That means that even when the share price was higher than CA$0.55 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.

In the last twelve months MAV Beauty Brands insiders were buying shares, but not selling. Their average price was about CA$0.92. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and 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!

insider-trading-volume
insider-trading-volume

MAV Beauty Brands is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

MAV Beauty Brands Insiders Bought Stock Recently

It's good to see that MAV Beauty Brands insiders have made notable investments in the company's shares. In total, insiders bought CA$234k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that MAV Beauty Brands insiders own 31% of the company, worth about CA$6.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About MAV Beauty Brands Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of MAV Beauty Brands we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - MAV Beauty Brands has 3 warning signs we think you should be aware of.

But note: MAV Beauty Brands 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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