Mach7 Technologies Independent Non-Executive Director Acquires 572% More Stock

Potential Mach7 Technologies Limited (ASX:M7T) shareholders may wish to note that the Independent Non-Executive Director, Rebecca Thompson, recently bought AU$228k worth of stock, paying AU$0.57 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 572%, potentially signalling some real optimism.

Check out our latest analysis for Mach7 Technologies

Mach7 Technologies Insider Transactions Over The Last Year

Notably, that recent purchase by Rebecca Thompson is the biggest insider purchase of Mach7 Technologies shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$0.36. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

Mach7 Technologies insiders may have bought shares in the last year, but they didn't sell any. 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!

Mach7 Technologies is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Mach7 Technologies

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. From looking at our data, insiders own AU$3.8m worth of Mach7 Technologies stock, about 4.4% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Do The Mach7 Technologies Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Mach7 Technologies insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Mach7 Technologies and understanding this should be part of your investment process.

But note: Mach7 Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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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.