Over the last year, a good number of insiders have significantly increased their holdings in MAAS Group Holdings Limited (ASX:MGH). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for MAAS Group Holdings
MAAS Group Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Executive Director Wesley Maas bought AU$53m worth of shares at a price of AU$4.00 per share. That means that an insider was happy to buy shares at above the current price of AU$3.60. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
MAAS Group Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
MAAS Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does MAAS Group Holdings Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that MAAS Group Holdings insiders own 59% of the company, worth about AU$684m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About MAAS Group Holdings Insiders?
The fact that there have been no MAAS Group Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, MAAS Group Holdings insiders feel good about the company's future. 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. Every company has risks, and we've spotted 4 warning signs for MAAS Group Holdings (of which 1 is potentially serious!) you should know about.