U.S. markets open in 8 hours 38 minutes
  • S&P Futures

    4,310.75
    +3.00 (+0.07%)
     
  • Dow Futures

    34,148.00
    +30.00 (+0.09%)
     
  • Nasdaq Futures

    13,657.25
    -1.00 (-0.01%)
     
  • Russell 2000 Futures

    2,026.40
    +3.10 (+0.15%)
     
  • Crude Oil

    87.30
    +0.77 (+0.89%)
     
  • Gold

    1,793.30
    +3.60 (+0.20%)
     
  • Silver

    20.14
    +0.05 (+0.25%)
     
  • EUR/USD

    1.0183
    +0.0012 (+0.12%)
     
  • 10-Yr Bond

    2.8240
    0.0000 (0.00%)
     
  • Vix

    19.69
    -0.26 (-1.30%)
     
  • GBP/USD

    1.2117
    +0.0023 (+0.19%)
     
  • USD/JPY

    134.1370
    -0.0780 (-0.06%)
     
  • BTC-USD

    24,053.53
    +23.52 (+0.10%)
     
  • CMC Crypto 200

    573.79
    +1.88 (+0.33%)
     
  • FTSE 100

    7,536.06
    +26.91 (+0.36%)
     
  • Nikkei 225

    29,162.99
    +294.08 (+1.02%)
     

Quite a few insiders invested in Matrix Composites & Engineering Ltd (ASX:MCE) last year which is positive news for shareholders

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Matrix Composites & Engineering Ltd's (ASX:MCE) 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.

See our latest analysis for Matrix Composites & Engineering

The Last 12 Months Of Insider Transactions At Matrix Composites & Engineering

In the last twelve months, the biggest single sale by an insider was when the insider, Vasilios Piperoglou, sold AU$103k worth of shares at a price of AU$0.14 per share. That means that an insider was selling shares at slightly below the current price (AU$0.15). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 13% of Vasilios Piperoglou's holding. Vasilios Piperoglou was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid AU$180k for 1.13m shares. But insiders sold 707.29k shares worth AU$103k. In the last twelve months there was more buying than selling by Matrix Composites & Engineering insiders. 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

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Matrix Composites & Engineering Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Matrix Composites & Engineering insiders own about AU$9.8m worth of shares (which is 43% 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.

What Might The Insider Transactions At Matrix Composites & Engineering Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Matrix Composites & Engineering insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 5 warning signs (3 are concerning!) that you ought to be aware of before buying any shares in Matrix Composites & Engineering.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here