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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Taylor Maritime Investments Limited (LON:TMI), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Taylor Maritime Investments
Taylor Maritime Investments Insider Transactions Over The Last Year
The Independent Non-Executive Director Charles Goodson Maltby made the biggest insider purchase in the last 12 months. That single transaction was for US$104k worth of shares at a price of US$0.90 each. That means that an insider was happy to buy shares at around the current price of US$1.00. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Taylor Maritime Investments share holders is that insiders were buying at near the current price.
While Taylor Maritime Investments insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Taylor Maritime Investments is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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 Taylor Maritime Investments insiders own 16% of the company, worth about US$53m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Taylor Maritime Investments Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Taylor Maritime Investments insiders are doubting the company, and they do own shares. While it's good to be aware of 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. While conducting our analysis, we found that Taylor Maritime Investments has 3 warning signs and it would be unwise to ignore them.