Those following along with MAAS Group Holdings Limited (ASX:MGH) will no doubt be intrigued by the recent purchase of shares by Wesley Maas, MD, CEO & Director of the company, who spent a stonking AU$9.5m on stock at an average price of AU$4.73. There’s no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.2%.
The Last 12 Months Of Insider Transactions At MAAS Group Holdings
Notably, that recent purchase by Wesley Maas is the biggest insider purchase of MAAS Group Holdings 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$5.15. 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. The good news for MAAS Group Holdings share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Wesley Maas.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
MAAS Group Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. MAAS Group Holdings insiders own 72% of the company, currently worth about AU$1.2b based on the recent share price. 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 Do The MAAS Group Holdings Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest MAAS Group Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. For example, MAAS Group Holdings has 2 warning signs (and 1 which doesn’t sit too well with us) we think you should know about.
But note: MAAS Group Holdings 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.