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Insiders who bought Tortilla Mexican Grill plc (LON:MEX) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£3.1m as a result of the stock's 15% gain over the same period. Put another way, the original UK£103.5k acquisition is now worth UK£116.3k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Tortilla Mexican Grill
The Last 12 Months Of Insider Transactions At Tortilla Mexican Grill
In fact, the recent purchase by Francesca Tiritiello was the biggest purchase of Tortilla Mexican Grill shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (UK£0.60), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Tortilla Mexican Grill insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Tortilla Mexican Grill Have Bought Stock Recently
Over the last quarter, Tortilla Mexican Grill insiders have spent a meaningful amount on shares. Overall, four insiders shelled out UK£103k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tortilla Mexican Grill insiders own about UK£6.9m worth of shares. That equates to 30% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Tortilla Mexican Grill Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Tortilla Mexican Grill insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tortilla Mexican Grill. While conducting our analysis, we found that Tortilla Mexican Grill has 2 warning signs and it would be unwise to ignore them.