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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 Myer Holdings Limited (ASX:MYR), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Myer Holdings
Myer Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Ari Mervis bought AU$125k worth of shares at a price of AU$0.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.72. 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.
In the last twelve months Myer Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Myer Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Myer Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Myer Holdings insiders own 2.2% of the company, worth about AU$13m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Myer Holdings Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Myer Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Myer Holdings insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Myer Holdings. You'd be interested to know, that we found 2 warning signs for Myer Holdings and we suggest you have a look.
Of course Myer Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.