Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of MS INTERNATIONAL plc (LON:MSI), that sends out a positive message to the company’s shareholders.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for MS INTERNATIONAL
MS INTERNATIONAL Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Group Finance Director & Executive Director Michael O’Connell for UK£165k worth of shares, at about UK£5.90 per share. That implies that an insider found the current price of UK£5.95 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. Happily, the MS INTERNATIONAL insiders decided to buy shares at close to current prices. We note that Michael O’Connell was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 44.50k shares for UK£219k. On the other hand they divested 28.00k shares, for UK£165k. In the last twelve months there was more buying than selling by MS INTERNATIONAL insiders. They paid about UK£4.92 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than 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!
MS INTERNATIONAL is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does MS INTERNATIONAL Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. MS INTERNATIONAL insiders own 41% of the company, currently worth about UK£39m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About MS INTERNATIONAL Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, MS INTERNATIONAL insiders feel good about the company’s future. 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. When we did our research, we found 3 warning signs for MS INTERNATIONAL (1 is a bit concerning!) that we believe deserve your full attention.
Of course MS INTERNATIONAL may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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