Even if it's not a huge purchase, we think it was good to see that William A. Burns, the Independent Non-Executive Vice Chairman of Mesoblast Limited (ASX:MSB) recently shelled out AU$60k to buy stock, at AU$1.83 per share. Even though that isn't a massive buy, it did increase their holding by 108%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At Mesoblast
Notably, that recent purchase by William A. Burns is the biggest insider purchase of Mesoblast shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$1.88. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider bought shares at close to current prices. William A. Burns was the only individual insider to buy over the year.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insider Ownership of Mesoblast
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 14% of Mesoblast shares, worth about AU$146m. 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 Do The Mesoblast Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Mesoblast insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Mesoblast.
Of course Mesoblast 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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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