The Executive Chairman of Mitchell Services Limited (ASX:MSV), Nathan Mitchell, Just Bought 1.3% More Shares

Investors who take an interest in Mitchell Services Limited (ASX:MSV) should definitely note that the Executive Chairman, Nathan Mitchell, recently paid AU$0.42 per share to buy AU$194k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.3%.

View our latest analysis for Mitchell Services

Mitchell Services Insider Transactions Over The Last Year

Notably, that recent purchase by Nathan Mitchell is the biggest insider purchase of Mitchell Services 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$0.41. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Nathan Mitchell was the only individual insider to buy during the last year.

Nathan Mitchell bought 716.32k shares over the last 12 months at an average price of AU$0.43. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Mitchell Services Boast High 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. Mitchell Services insiders own about AU$28m worth of shares. That equates to 35% of the company. 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 Mitchell Services Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Mitchell Services shares, given these transactions (along with notable insider ownership of the company). 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. At Simply Wall St, we found 2 warning signs for Mitchell Services that deserve your attention before buying any shares.

Of course Mitchell Services 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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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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