Insider Buyers Lose Additional UK£29k As Tortilla Mexican Grill Dips To UK£15m

Insiders who bought UK£103.5k worth of Tortilla Mexican Grill plc's (LON:MEX) stock at an average buy price of UK£0.53 over the last year may be disappointed by the recent 12% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only UK£74.0k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Tortilla Mexican Grill

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Francesca Tiritiello bought UK£50k worth of shares at a price of UK£0.54 per share. That means that an insider was happy to buy shares at above the current price of UK£0.38. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Tortilla Mexican Grill insiders were buying shares, but not selling. 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!

See our latest analysis for Tortilla Mexican Grill

Tortilla Mexican Grill is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Tortilla Mexican Grill Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Tortilla Mexican Grill insiders own about UK£3.5m worth of shares. That equates to 24% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Tortilla Mexican Grill Insiders?

The fact that there have been no Tortilla Mexican Grill insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Tortilla Mexican Grill insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tortilla Mexican Grill. For example - Tortilla Mexican Grill has 2 warning signs we think you should be aware of.

But note: Tortilla Mexican Grill 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.

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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.