Yahoo Finance Great news for musicMagpie plc (LON:MMAG): Insiders acquired stock in large numbers last year
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in musicMagpie plc's (LON:MMAG) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for musicMagpie
The Last 12 Months Of Insider Transactions At musicMagpie
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Steven Oliver bought UK£186k worth of shares at a price of UK£0.14 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.26), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
musicMagpie insiders may have bought shares in the last year, but they didn't sell any. 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!
musicMagpie is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does musicMagpie 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. I reckon it's a good sign if insiders own a significant number of shares in the company. musicMagpie insiders own about UK£5.8m worth of shares. That equates to 23% 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 musicMagpie Insiders?
It doesn't really mean much that no insider has traded musicMagpie shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in musicMagpie and we see no evidence to suggest they are worried about the 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. Our analysis shows 3 warning signs for musicMagpie (1 is potentially serious!) and we strongly recommend you look at these before investing.
But note: musicMagpie may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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