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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in MOVE Logistics Group Limited's (NZSE:MOV) instance, it's good news for shareholders.
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 MOVE Logistics Group
The Last 12 Months Of Insider Transactions At MOVE Logistics Group
The insider Christopher Dunphy made the biggest insider purchase in the last 12 months. That single transaction was for NZ$245k worth of shares at a price of NZ$0.49 each. That means that even when the share price was higher than NZ$0.21 (the recent price), an insider wanted to purchase shares. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months MOVE Logistics Group insiders were buying shares, but not selling. Their average price was about NZ$0.42. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and 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!
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.
Does MOVE Logistics Group 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. I reckon it's a good sign if insiders own a significant number of shares in the company. MOVE Logistics Group insiders own about NZ$9.4m worth of shares. That equates to 35% of the company. 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 MOVE Logistics Group Insiders?
It doesn't really mean much that no insider has traded MOVE Logistics Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in MOVE Logistics Group and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for MOVE Logistics Group (2 are potentially serious!) that we believe deserve your full attention.