Trade Alert: The CEO, President & Director Of The Mosaic Company (NYSE:MOS), James O’Rourke, Has Just Spent US$201k Buying Shares
Potential The Mosaic Company (NYSE:MOS) shareholders may wish to note that the CEO, President & Director, James O’Rourke, recently bought US$201k worth of stock, paying US$13.43 for each share. Although the purchase only increased their holding by 8.8%, it is still a solid purchase in our view.
View our latest analysis for Mosaic
Mosaic Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Cheryl Beebe for US$250k worth of shares, at about US$19.21 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$11.92). 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Mosaic 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 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!
Mosaic is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Mosaic 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. Insiders own 0.2% of Mosaic shares, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Mosaic Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Mosaic insiders are well aligned, and that they may think the share price is too low. 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, Mosaic has 2 warning signs (and 1 which is a bit concerning) we think you should know about.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
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