Director Michael Mayder Sold A Bunch Of Shares In Maxim Power

We note that the Maxim Power Corp. (TSE:MXG) Director, Michael Mayder, recently sold CA$105k worth of stock for CA$5.30 per share. That might not be a huge sum but it was 56% of their personal holding, so we find it a little discouraging.

Check out our latest analysis for Maxim Power

The Last 12 Months Of Insider Transactions At Maxim Power

In fact, the recent sale by Michael Mayder was the biggest sale of Maxim Power shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of CA$4.94. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Maxim Power insiders didn't buy any shares over the last year. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Maxim Power

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. Our data suggests Maxim Power insiders own 2.0% of the company, worth about CA$6.5m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Maxim Power Insiders?

Insiders haven't bought Maxim Power stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Maxim Power makes money, and is growing profits. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Maxim Power has 4 warning signs and it would be unwise to ignore these.

But note: Maxim Power 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.