The Independent Non-Executive Director of Genworth Mortgage Insurance Australia Limited (ASX:GMA), Gai McGrath, Just Bought 140% More Shares

Even if it's not a huge purchase, we think it was good to see that Gai McGrath, the Independent Non-Executive Director of Genworth Mortgage Insurance Australia Limited (ASX:GMA) recently shelled out AU$102k to buy stock, at AU$2.45 per share. Even though that isn't a massive buy, it did increase their holding by 140%, which is arguably a good sign.

See our latest analysis for Genworth Mortgage Insurance Australia

Genworth Mortgage Insurance Australia Insider Transactions Over The Last Year

In fact, the recent purchase by Gai McGrath was the biggest purchase of Genworth Mortgage Insurance Australia shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$2.39. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Genworth Mortgage Insurance Australia insiders bought shares during the last year, they didn't sell. Their average price was about AU$2.01. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Genworth Mortgage Insurance Australia insiders have about 0.3% of the stock, worth approximately AU$3.3m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Genworth Mortgage Insurance Australia Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Genworth Mortgage Insurance Australia insiders are expecting a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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