Yahoo Finance Mainfreight Insiders Added NZ$1.06m Of Stock To Their Holdings
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Mainfreight Limited (NZSE:MFT), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Mainfreight
Mainfreight Insider Transactions Over The Last Year
Notably, that recent purchase by Group MD & Director Donald Braid was not the only time they bought Mainfreight shares this year. They previously made an even bigger purchase of NZ$678k worth of shares at a price of NZ$67.77 per share. That implies that an insider found the current price of NZ$69.00 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Mainfreight insiders decided to buy shares at close to current prices.
In the last twelve months Mainfreight insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Mainfreight is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Mainfreight Have Bought Stock Recently
There was some insider buying at Mainfreight over the last quarter. Group MD & Director Donald Braid shelled out NZ$69k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Mainfreight insiders own 18% of the company, currently worth about NZ$1.3b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Mainfreight Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Mainfreight. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mainfreight. At Simply Wall St, we found 1 warning sign for Mainfreight that deserve your attention before buying any shares.
But note: Mainfreight 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
