Investors who take an interest in MNF Group Limited (ASX:MNF) should definitely note that the Independent Non-Executive Director, David Paul Stewart, recently paid AU$4.75 per share to buy AU$238k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 25%.
The Last 12 Months Of Insider Transactions At MNF Group
The Non Executive Director, Andy Fung, made the biggest insider sale in the last 12 months. That single transaction was for AU$2.5m worth of shares at a price of AU$5.09 each. That means that an insider was selling shares at around the current price of AU$4.59. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
Over the last year, we can see that insiders have bought 350.00k shares worth AU$1.5m. But they sold 977.32k shares for AU$4.7m. All up, insiders sold more shares in MNF Group than they bought, over the last year. The average sell price was around AU$4.85. It’s not too encouraging to see that insiders have sold at below the current price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn’t jump to conclusions. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does MNF Group Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. MNF Group insiders own about AU$126m worth of shares. That equates to 33% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About MNF Group Insiders?
It’s certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. The recent buying by an insider , along with high insider ownership, suggest that MNF Group insiders are fairly aligned, and optimistic. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing MNF Group. In terms of investment risks, we’ve identified 2 warning signs with MNF Group and understanding these should be part of your investment process.
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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