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Those following along with MSC Industrial Direct Co., Inc. (NYSE:MSM) will no doubt be intrigued by the recent purchase of shares by Mitchell Jacobson, Non-Executive Chairman of the company, who spent a stonking US$14m on stock at an average price of US$72.25. That increased their holding by a full 276%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
View our latest analysis for MSC Industrial Direct
The Last 12 Months Of Insider Transactions At MSC Industrial Direct
In fact, the recent purchase by Mitchell Jacobson was the biggest purchase of MSC Industrial Direct shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$75.10. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for MSC Industrial Direct share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Mitchell Jacobson.
Mitchell Jacobson bought 204.65k shares over the last 12 months at an average price of US$72.41. 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!
MSC Industrial Direct is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does MSC Industrial Direct Boast High 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. MSC Industrial Direct insiders own 17% of the company, currently worth about US$685m based on the recent share price. 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 MSC Industrial Direct Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about MSC Industrial Direct. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for MSC Industrial Direct that deserve your attention before buying any shares.