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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 MJ Gleeson plc's (LON:GLE) 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for MJ Gleeson
MJ Gleeson Insider Transactions Over The Last Year
The CEO & Director Graham Prothero made the biggest insider purchase in the last 12 months. That single transaction was for UK£52k worth of shares at a price of UK£5.20 each. That implies that an insider found the current price of UK£5.74 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
MJ Gleeson insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around UK£4.48. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of MJ Gleeson
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 looking at our data, insiders own UK£2.4m worth of MJ Gleeson stock, about 0.7% of the company. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At MJ Gleeson Tell Us?
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. We'd like to see bigger individual holdings. However, we don't see anything to make us think MJ Gleeson insiders are doubting the company. 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. Case in point: We've spotted 1 warning sign for MJ Gleeson you should be aware of.