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Mothercare plc (LON:MTC) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 13% decline in the stock price. After taking the recent loss into consideration, the UK£125.0k worth of stock they bought is now worth UK£182.0k, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Mothercare
The Last 12 Months Of Insider Transactions At Mothercare
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Clive Whiley bought UK£100k worth of shares at a price of UK£0.025 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.036. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Mothercare insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Mothercare Have Bought Stock Recently
It's good to see that Mothercare insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought UK£125k worth of shares. That shows some optimism about the company's future.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Mothercare insiders own 16% of the company, worth about UK£3.3m. 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 Does This Data Suggest About Mothercare Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Mothercare shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mothercare. When we did our research, we found 3 warning signs for Mothercare (2 can't be ignored!) that we believe deserve your full attention.