We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Millennium Services Group Limited (ASX:MIL), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Millennium Services Group
The Last 12 Months Of Insider Transactions At Millennium Services Group
Executive Director Royce Galea made the biggest insider purchase in the last 12 months. That single transaction was for AU$219k worth of shares at a price of AU$0.96 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.49). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Royce Galea was the only individual insider to buy over the year. We note that Royce Galea was both the biggest buyer and the biggest seller.
The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Millennium Services Group Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Millennium Services Group, over the last three months. We can see that Executive Director Royce Galea paid AU$219k for shares in the company. But Executive Director Royce Galea sold shares worth AU$54k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.