Yahoo Finance A Macquarie Telecom Group Limited (ASX:MAQ) insider increased their holdings by 18% last year
From what we can see, insiders were net buyers in Macquarie Telecom Group Limited's (ASX:MAQ ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
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 Macquarie Telecom Group
Macquarie Telecom Group Insider Transactions Over The Last Year
Notably, that recent purchase by Peter Richard James is the biggest insider purchase of Macquarie Telecom Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$59.99. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Macquarie Telecom Group insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Peter Richard James.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Macquarie Telecom Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Macquarie Telecom Group 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Macquarie Telecom Group insiders own about AU$714m worth of shares (which is 55% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Macquarie Telecom Group Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Macquarie Telecom Group. Looks promising! 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. Every company has risks, and we've spotted 2 warning signs for Macquarie Telecom Group (of which 1 makes us a bit uncomfortable!) you should know about.
But note: Macquarie Telecom 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.
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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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