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Whilst it may not be a huge deal, we thought it was good to see that the MultiPlan Corporation (NYSE:MPLN) Independent Director, Julie Klapstein, recently bought US$72k worth of stock, for US$6.00 per share. Even though that isn't a massive buy, it did increase their holding by 188%, which is arguably a good sign.
MultiPlan Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Director Michael Klein for US$5.0m worth of shares, at about US$7.11 per share. That means that an insider was happy to buy shares at above the current price of US$6.03. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months MultiPlan insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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).
Does MultiPlan Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. MultiPlan insiders own about US$345m worth of shares (which is 8.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The MultiPlan Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about MultiPlan. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MultiPlan. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of MultiPlan.
But note: MultiPlan 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.
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.
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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