There is usually nothing wrong with one insider buying shares. But when a significant number of insiders buy stocks, as happened in 2019, Magellan Financial Group Limited (ASX:MFG), this is great news for shareholders.
While we are by no means saying that investors should make decisions solely based on the actions of a company's directors, we believe it is perfectly logical to monitor the actions of insiders. .
Check out our latest analysis for Magellan Financial Group.
Magellan Financial Group insider transactions over the past year
The biggest purchase by an insider in the last twelve months was when Executive Chairman Andrew Formica bought AU$250k worth of shares at a price of AU$6.24 per share. We would like to consider purchasing, but this purchase was made at a price significantly below his current price of AU$8.72. This occurred at a lower valuation, so it doesn't tell us much about whether insiders find today's price attractive.
Magellan Financial Group insiders bought shares last year, but didn't sell them. They paid an average of about AU$4.21. There's no denying that it's good to see insiders buying shares in a company. However, it should be noted that the investment was made at a price well below today's stock price. You can see a visual representation of the 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, click on the chart below.
There are always plenty of stocks that insiders are buying. Check out each stock one by one or take a look at this if that suits your style. free List of companies. (Hint: Insiders are buying them).
Magellan Financial Group Insiders Recently Bought Stock
Magellan Financial Group saw some insider buying in the last quarter. Independent director Deborah Page put A$50,000 into the shares at the time. It's great to see that insiders are only buying, not selling. However, in this case, the purchase amount means that the recent transaction itself may not mean much.
Does Magellan Financial Group boast high insider ownership?
Looking at the total insider shares in a company can help you determine whether they are well aligned with common shareholders. Typically, the higher the insider ownership, the more likely it is that insiders are incentivized to build the company for the long term. Magellan Financial Group insiders own around AU$50m worth of shares. This is equivalent to 3.2% of the company. This level of insider ownership is good, but far from particularly noticeable. That certainly suggests a reasonable degree of consistency.
So what do Magellan Financial Group's insider transactions tell us?
Recent insider buying is a good thing. Our analysis of last year's transactions also gives us confidence. Considering that insiders also own a significant amount of Magellan Financial Group, we think they're probably quite confident in its bright future. In addition to knowing about ongoing insider transactions, it is useful to identify the risks facing Magellan Financial Group.Case in point: we discovered Two warning signs for Magellan Financial Group One of these is a little off-putting.
of course Magellan Financial Group may not be the best stock to buy.So you might want to see this free There are many high-quality companies here.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
