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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Malvern International Plc (LON:MLVN), that sends out a positive 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 Malvern International
Malvern International Insider Transactions Over The Last Year
The CEO & Executive Director Richard Christopher Mace made the biggest insider purchase in the last 12 months. That single transaction was for UK£41k worth of shares at a price of UK£0.17 each. Even though the purchase was made at a significantly lower price than the recent price (UK£0.20), we still think insider buying is a positive. 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.
Happily, we note that in the last year insiders paid UK£86k for 502.90k shares. But they sold 502.90k shares for UK£86k. In the last twelve months there was more buying than selling by Malvern International insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Malvern International is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Are Malvern International Insiders Buying Or Selling?
In the last three months, insiders bought UK£86k. That's only a tiny bit more than the sales, worth UK£86k. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Insider Ownership Of Malvern International
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. Malvern International insiders own about UK£1.3m worth of shares. That equates to 26% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Malvern International Tell Us?
We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Malvern International and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Malvern International. Case in point: We've spotted 3 warning signs for Malvern International you should be aware of, and 2 of these are a bit concerning.