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Maxim Power Corp. (TSE:MXG) shareholders (or potential shareholders) will be happy to see that the Independent Vice Chairman, W. Wilson, recently bought a whopping CA$2.0m worth of stock, at a price of CA$3.60. While that only increased their holding size by 3.4%, it is still a big swing by our standards.
Check out our latest analysis for Maxim Power
Maxim Power Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Vice Chairman W. Wilson was not their only acquisition of Maxim Power shares this year. Earlier in the year, they paid CA$3.20 per share in a CA$2.4m purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$3.79. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
W. Wilson purchased 1.31m shares over the year. The average price per share was CA$3.37. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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 37% of Maxim Power shares, worth about CA$70m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Maxim Power Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Maxim Power insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Maxim Power.