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Even if it's not a huge purchase, we think it was good to see that John King, the CEO, MD & Director of Myer Holdings Limited (ASX:MYR) recently shelled out AU$93k to buy stock, at AU$0.26 per share. Even though that isn't a massive buy, it did increase their holding by 54%, which is a arguably a good sign.
Check out our latest analysis for Myer Holdings
The Last 12 Months Of Insider Transactions At Myer Holdings
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Margaret Cattermole bought AU$200k worth of shares at a price of AU$0.55 per share. That means that an insider was happy to buy shares at above the current price of AU$0.23. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Myer Holdings insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.46 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. 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 insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Myer Holdings
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Myer Holdings insiders have about 1.2% of the stock, worth approximately AU$2.5m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Myer Holdings Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Myer Holdings insiders are reasonably well aligned, and optimistic for 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Myer Holdings.