Whilst it may not be a huge deal, we thought it was good to see that the Monadelphous Group Limited (ASX:MND) Independent Deputy Chair & Lead Independent Non-Executive Director, Sue Murphy, recently bought AU$68k worth of stock, for AU$13.60 per share. Even though that isn't a massive buy, it did increase their holding by 63%, which is arguably a good sign.
The Last 12 Months Of Insider Transactions At Monadelphous Group
Notably, that recent purchase by Sue Murphy is the biggest insider purchase of Monadelphous Group shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$13.08. 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Monadelphous Group insiders bought shares during the last year, they didn't sell. 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!
Monadelphous Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Monadelphous Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Monadelphous Group insiders own about AU$51m worth of shares. That equates to 4.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Monadelphous Group Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Monadelphous Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Monadelphous Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Monadelphous Group.
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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