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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Tortilla Mexican Grill plc's (LON:MEX) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
We've discovered 3 warning signs about Tortilla Mexican Grill. View them for free.
The Last 12 Months Of Insider Transactions At Tortilla Mexican Grill
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Francesca Tiritiello for UK£50k worth of shares, at about UK£0.54 per share. That means that an insider was happy to buy shares at above the current price of UK£0.36. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Tortilla Mexican Grill 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. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Tortilla Mexican Grill
Tortilla Mexican Grill 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 Of Tortilla Mexican Grill
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Tortilla Mexican Grill insiders own 20% of the company, worth about UK£2.8m. 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 fact that there have been no Tortilla Mexican Grill insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Tortilla Mexican Grill and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Tortilla Mexican Grill you should know about.
