Insider Buying: The Matrix Composites & Engineering Ltd (ASX:MCE) MD, CEO & Director Just Bought 10% More Shares

By
Simply Wall St
Published
June 30, 2020
ASX:MCE

Even if it's not a huge purchase, we think it was good to see that Aaron Begley, the MD, CEO & Director of Matrix Composites & Engineering Ltd (ASX:MCE) recently shelled out AU$71k to buy stock, at AU$0.19 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 10%.

Check out our latest analysis for Matrix Composites & Engineering

The Last 12 Months Of Insider Transactions At Matrix Composites & Engineering

In the last twelve months, the biggest single purchase by an insider was when insider Mike Conway bought AU$91k worth of shares at a price of AU$0.37 per share. That means that an insider was happy to buy shares at above the current price of AU$0.15. 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 Matrix Composites & Engineering insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.25. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

ASX:MCE Insider Trading Volume June 30th 2020
ASX:MCE Insider Trading Volume June 30th 2020

Matrix Composites & Engineering 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.

Does Matrix Composites & Engineering Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Matrix Composites & Engineering insiders own 42% of the company, currently worth about AU$6.7m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Matrix Composites & Engineering Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Matrix Composites & Engineering. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Matrix Composites & Engineering you should know about.

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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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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