Yahoo Finance Insiders rewarded with a US$12m addition on top of their US$14m purchase as Mesa Air Group, Inc. (NASDAQ:MESA) hits US$315m
Mesa Air Group, Inc. (NASDAQ:MESA) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a US$34m addition to the company’s market value. In other words, the original US$14m purchase is now worth US$26m.
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.
Check out our latest analysis for Mesa Air Group
The Last 12 Months Of Insider Transactions At Mesa Air Group
Over the last year, we can see that the biggest insider purchase was by insider Ronald Burkle for US$13m worth of shares, at about US$5.97 per share. Even though the purchase was made at a significantly lower price than the recent price (US$8.77), 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.
Ronald Burkle bought 2.96m shares over the last 12 months at an average price of US$4.67. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 11% of Mesa Air Group shares, worth about US$36m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Mesa Air Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Mesa Air Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Mesa Air Group and we see no evidence to suggest they are worried about 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. You'd be interested to know, that we found 2 warning signs for Mesa Air Group and we suggest you have a look.
But note: Mesa Air Group 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.
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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