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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 Mayne Pharma Group Limited (ASX:MYX), it sends a favourable message to the company's 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.
See our latest analysis for Mayne Pharma Group
The Last 12 Months Of Insider Transactions At Mayne Pharma Group
In the last twelve months, the biggest single purchase by an insider was when CEO, MD & Director Shawn O’Brien bought AU$141k worth of shares at a price of AU$3.80 per share. We do like to see buying, but this purchase was made at well below the current price of AU$4.70. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Mayne Pharma Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does Mayne Pharma 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. We usually like to see fairly high levels of insider ownership. It appears that Mayne Pharma Group insiders own 8.4% of the company, worth about AU$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Mayne Pharma Group Tell Us?
The fact that there have been no Mayne Pharma Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Mayne Pharma Group and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Mayne Pharma Group you should be aware of.