Mayne Pharma Group Reaches AU$355m Market Cap Benefiting Insider Stock Buying

Last week, Mayne Pharma Group Limited (ASX:MYX) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a AU$35m increase in the company's market worth, implying a 13% gain on their initial purchase. As a result, their original purchase of AU$289.9k worth of stock is now worth AU$326.2k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Mayne Pharma Group

Mayne Pharma Group Insider Transactions Over The Last Year

The CEO, MD & Director Shawn O’Brien made the biggest insider purchase in the last 12 months. That single transaction was for AU$141k worth of shares at a price of AU$3.80 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$4.38. 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.

While Mayne Pharma Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Mayne Pharma Group 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 Mayne Pharma Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Mayne Pharma Group insiders own about AU$30m worth of shares. That equates to 8.3% 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 Mayne Pharma Group Tell Us?

The fact that there have been no Mayne Pharma Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Mayne Pharma Group 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. At Simply Wall St, we've found that Mayne Pharma Group has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course Mayne Pharma Group 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 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.