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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 Tortilla Mexican Grill plc's (LON:MEX) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Tortilla Mexican Grill
The Last 12 Months Of Insider Transactions At Tortilla Mexican Grill
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Francesca Tiritiello bought UK£50k worth of shares at a price of UK£0.54 per share. That means that an insider was happy to buy shares at above the current price of UK£0.50. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Tortilla Mexican Grill insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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).
Does Tortilla Mexican Grill Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Tortilla Mexican Grill insiders own about UK£5.3m worth of shares. That equates to 27% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Tortilla Mexican Grill Insiders?
The fact that there have been no Tortilla Mexican Grill insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Tortilla Mexican Grill 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Tortilla Mexican Grill.