Several Insiders Invested In Medallion Financial Flagging Positive News \
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Medallion Financial Corp. (NASDAQ:MFIN), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Medallion Financial
Medallion Financial Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider David Orr bought US$116k worth of shares at a price of US$7.41 per share. So it's clear an insider wanted to buy, at around the current price, which is US$7.59. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Medallion Financial insiders decided to buy shares at close to current prices.
In the last twelve months Medallion Financial insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Medallion Financial Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. It appears that Medallion Financial insiders own 29% of the company, worth about US$50m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Medallion Financial Tell Us?
It doesn't really mean much that no insider has traded Medallion Financial shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Medallion Financial and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Medallion Financial. Our analysis shows 3 warning signs for Medallion Financial (2 are significant!) and we strongly recommend you look at these before investing.
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.
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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.
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