MD, CEO & Director of MaxiPARTS Peter Loimaranta Buys 92% More Shares

Investors who take an interest in MaxiPARTS Limited (ASX:MXI) should definitely note that the MD, CEO & Director, Peter Loimaranta, recently paid AU$1.84 per share to buy AU$207k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 92%, potentially signalling some real optimism.

See our latest analysis for MaxiPARTS

MaxiPARTS Insider Transactions Over The Last Year

Notably, that recent purchase by Peter Loimaranta is the biggest insider purchase of MaxiPARTS shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$1.90. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the MaxiPARTS insiders decided to buy shares at close to current prices.

While MaxiPARTS insiders bought shares during the last year, they didn't sell. The average buy price was around AU$2.07. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that MaxiPARTS insiders own 20% of the company, worth about AU$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At MaxiPARTS Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest MaxiPARTS insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MaxiPARTS. At Simply Wall St, we found 4 warning signs for MaxiPARTS that deserve your attention before buying any shares.

Of course MaxiPARTS 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.