Even if it's not a huge purchase, we think it was good to see that Aaron Begley, the MD, CEO & Director of Matrix Composites & Engineering Ltd (ASX:MCE) recently shelled out AU$71k to buy stock, at AU$0.19 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 10%.
Matrix Composites & Engineering Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Mike Conway bought AU$91k worth of shares at a price of AU$0.37 per share. That means that an insider was happy to buy shares at above the current price of AU$0.15. 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. 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.
While Matrix Composites & Engineering insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.25. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Matrix Composites & Engineering is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Matrix Composites & Engineering insiders own about AU$6.7m worth of shares (which is 42% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Matrix Composites & Engineering Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. 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 Matrix Composites & Engineering. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Matrix Composites & Engineering. Case in point: We've spotted 3 warning signs for Matrix Composites & Engineering you should be aware of.
Of course Matrix Composites & Engineering 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.
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. 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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