It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in MJ Hudson Group plc’s (LON:MJH) case, it’s fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
MJ Hudson Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the COO & Director, Odi Lahav, sold UK£84k worth of shares at a price of UK£0.56 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is UK£0.35. So it may not tell us anything about how insiders feel about the current share price. Odi Lahav was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 484.77k shares for UK£228k. But insiders sold 150.00k shares worth UK£84k. Overall, MJ Hudson Group insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
MJ Hudson Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does MJ Hudson Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 39% of MJ Hudson Group shares, worth about UK£24m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At MJ Hudson Group Tell Us?
It doesn’t really mean much that no insider has traded MJ Hudson Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in MJ Hudson Group and we see no evidence to suggest they are worried about the future. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example – MJ Hudson Group has 2 warning signs we think you should be aware of.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.