Mayne Pharma Group Reaches AU$536m Market Cap Benefiting Insider Stock Buying

Mayne Pharma Group Limited (ASX:MYX) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 26%, resulting in a AU$112m rise in the company's market capitalisation, translating to a gain of 72% on their initial investment. As a result, the stock they originally bought for AU$588.4k is now worth AU$1.01m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Mayne Pharma Group

The Last 12 Months Of Insider Transactions At Mayne Pharma Group

In the last twelve months, the biggest single purchase by an insider was when CEO, MD & Director Shawn O’Brien bought AU$141k worth of shares at a price of AU$3.80 per share. We do like to see buying, but this purchase was made at well below the current price of AU$6.60. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Mayne Pharma Group 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!

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).

Insiders At Mayne Pharma Group Have Bought Stock Recently

There was some insider buying at Mayne Pharma Group over the last quarter. Independent Non-Executive Chairman Frank Condella purchased AU$39k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

Insider Ownership Of Mayne Pharma Group

For a common shareholder, it is worth checking how many shares are held by company 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$56m worth of shares. That equates to 10% 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.

So What Does This Data Suggest About Mayne Pharma Group Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Mayne Pharma Group and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Mayne Pharma Group, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.