Motio Insiders May Regret Not Buying More, Market Cap Hits AU$17m

Insiders who bought Motio Limited (ASX:MXO) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$1.9m as a result of the stock's 13% gain over the same period. Put another way, the original AU$214.9k acquisition is now worth AU$580.6k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Motio

The Non-Executive Director Harley Grosser made the biggest insider purchase in the last 12 months. That single transaction was for AU$140k worth of shares at a price of AU$0.019 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.06. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Harley Grosser purchased 9.68m shares over the year. The average price per share was AU$0.022. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Motio

Motio 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.

Motio Insiders Are Selling The Stock

The last three months saw some Motio insider selling. Non-Executive Director Harley Grosser sold AU$69k worth of shares in that time. But the good news is that there was purchasing too , worth AU$35k. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

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. Motio insiders own about AU$4.0m worth of shares. That equates to 24% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Motio Tell Us?

Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Motio insiders are doubting the company, and they do own shares. While it's good to be aware of 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. For example - Motio has 1 warning sign we think you should be aware of.

But note: Motio 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.