Those following along with Maxim Power Corp. (TSE:MXG) will no doubt be intrigued by the recent purchase of shares by W. Wilson, Independent Vice Chairman of the company, who spent a stonking CA$2.0m on stock at an average price of CA$3.60. While that only increased their holding size by 3.4%, it is still a big swing by our standards.
Maxim Power Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Vice Chairman W. Wilson was not their only acquisition of Maxim Power shares this year. Earlier in the year, they paid CA$3.20 per share in a CA$2.4m purchase. We do like to see buying, but this purchase was made at well below the current price of CA$3.79. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
W. Wilson purchased 1.31m shares over the year. The average price per share was CA$3.37. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Maxim Power Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 37% of Maxim Power shares, worth about CA$70m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Maxim Power Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Maxim Power we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Maxim Power. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Maxim Power.
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, but not derivative transactions.
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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.