Non-Executive Chairman of MJ Gleeson James Michael Thomson Buys 29% More Shares

Even if it's not a huge purchase, we think it was good to see that James Michael Thomson, the Non-Executive Chairman of MJ Gleeson plc (LON:GLE) recently shelled out UK£50k to buy stock, at UK£4.07 per share. That purchase might not be huge but it did increase their holding by 29%.

See our latest analysis for MJ Gleeson

The Last 12 Months Of Insider Transactions At MJ Gleeson

The CEO & Director Graham Prothero made the biggest insider purchase in the last 12 months. That single transaction was for UK£143k worth of shares at a price of UK£4.03 each. So it's clear an insider wanted to buy, at around the current price, which is UK£4.06. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for MJ Gleeson share holders is that insiders were buying at near the current price.

MJ Gleeson insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

MJ Gleeson is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.4% of MJ Gleeson shares, worth about UK£10m. 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 MJ Gleeson Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of MJ Gleeson we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for MJ Gleeson you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.