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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Matthews International Corporation (NASDAQ:MATW).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Matthews International Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Brian Dunn sold US$557k worth of shares at a price of US$53.30 per share. That is hardly a positive sign, even though it took place above the latest price (US$36.43). So it may not tell us anything about how insiders feel about the current share price. Brian Dunn was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 3.00k shares for US$141k. On the other hand they divested 10.45k shares, for US$557k. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Matthews International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Matthews International Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Matthews International insiders own 3.6% of the company, worth about US$42m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Matthews International Tell Us?
The fact that there have been no Matthews International insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Matthews International insiders. But it's good to see that insiders own shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Matthews International.
But note: Matthews International 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.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.