Yahoo Finance A number of insiders bought Mondi plc (LON:MNDI) stock last year, which is great news for shareholders
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Mondi plc's (LON:MNDI) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Mondi
Mondi Insider Transactions Over The Last Year
The Group CFO & Executive Director Michael Powell made the biggest insider purchase in the last 12 months. That single transaction was for UK£99k worth of shares at a price of UK£17.64 each. That means that an insider was happy to buy shares at around the current price of UK£18.17. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Mondi insiders bought shares during the last year, they didn't sell. 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!
Mondi is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Mondi Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Mondi. Overall, two insiders shelled out UK£188k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Mondi Boast High 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. We usually like to see fairly high levels of insider ownership. Based on our data, Mondi insiders have about 0.04% of the stock, worth approximately UK£3.2m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Mondi Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Mondi insiders are reasonably well aligned, and optimistic for 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. At Simply Wall St, we found 1 warning sign for Mondi that deserve your attention before buying any shares.
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.
