The Non-Executive Chairman of MACA Limited (ASX:MLD), Geoffrey Baker, Just Bought 5.8% More Shares

Those following along with MACA Limited (ASX:MLD) will no doubt be intrigued by the recent purchase of shares by Geoffrey Baker, Non-Executive Chairman of the company, who spent a stonking AU$764k on stock at an average price of AU$1.02. While that only increased their holding size by 5.8%, it is still a big swing by our standards.

View our latest analysis for MACA

MACA Insider Transactions Over The Last Year

Notably, that recent purchase by Geoffrey Baker is the biggest insider purchase of MACA shares that we've seen in the last year. That implies that an insider found the current price of AU$1.24 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 MACA insiders decided to buy shares at close to current prices.

While MACA insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Many investors like to check how much of a company is owned by 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. Insiders own 18% of MACA shares, worth about AU$67m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About MACA Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in MACA shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for MACA you should know about.

Of course MACA 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, but not derivative transactions.

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