Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
We often see insiders buying up shares in companies that perform well over the long term. 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 we'll take a look at whether insiders have been buying or selling shares in Mejority Capital Limited (ASX:MJC).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Mejority Capital
Mejority Capital Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Glenn Molloy for AU$215k worth of shares, at about AU$0.025 per share. That means that even when the share price was higher than AU$0.024 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders paid AU$280k for 11.0m shares purchased. In the last twelve months Mejority Capital insiders were buying shares, but not selling. 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!
Mejority Capital is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Mejority Capital Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Mejority Capital. Glenn Molloy purchased AU$52k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.