Several Insiders Invested In Myer Holdings 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 Myer Holdings Limited (ASX:MYR), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Myer Holdings
The Last 12 Months Of Insider Transactions At Myer Holdings
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Ari Mervis for AU$125k worth of shares, at about AU$0.50 per share. That means that an insider was happy to buy shares at around the current price of AU$0.52. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Myer Holdings insiders decided to buy shares at close to current prices.
Myer Holdings insiders may have bought shares in the last year, but they didn't sell any. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Myer Holdings Have Bought Stock Recently
It's good to see that Myer Holdings insiders have made notable investments in the company's shares. Overall, three insiders shelled out AU$247k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership Of Myer Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.2% of Myer Holdings shares, worth about AU$9.4m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Myer Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Myer Holdings stock. 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. Our analysis shows 2 warning signs for Myer Holdings (1 can't be ignored!) and we strongly recommend you look at them before investing.
Of course Myer Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.
