Even if it’s not a huge purchase, we think it was good to see that David Ahmet, the Co-Founder of MotorCycle Holdings Limited (ASX:MTO) recently shelled out AU$95k to buy stock, at AU$1.91 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Check out our latest analysis for MotorCycle Holdings
The Last 12 Months Of Insider Transactions At MotorCycle Holdings
Notably, that recent purchase by Co-Founder David Ahmet was not the only time they bought MotorCycle Holdings shares this year. They previously made an even bigger purchase of AU$7.6m worth of shares at a price of AU$1.20 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$1.86), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 6.66m shares for AU$8.0m. But they sold 6.30m shares for AU$7.6m. In the last twelve months there was more buying than selling by MotorCycle Holdings insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
MotorCycle Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of MotorCycle Holdings
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 36% of MotorCycle Holdings shares, worth about AU$41m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At MotorCycle Holdings Tell Us?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in MotorCycle Holdings shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing MotorCycle Holdings. To help with this, we’ve discovered 2 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in MotorCycle Holdings.
Of course MotorCycle Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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. 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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