Malvern International Insiders May Regret Not Buying More, Market Cap Hits UK£5.1m

Insiders who bought Malvern International Plc (LON:MLVN) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£489k as a result of the stock's 11% gain over the same period. Put another way, the original UK£86.2k acquisition is now worth UK£105.6k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Malvern International

The Last 12 Months Of Insider Transactions At Malvern International

The CEO & Executive Director Richard Christopher Mace made the biggest insider purchase in the last 12 months. That single transaction was for UK£41k worth of shares at a price of UK£0.17 each. We do like to see buying, but this purchase was made at well below the current price of UK£0.21. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 502.90k shares for UK£86k. But they sold 502.90k shares for UK£86k. Overall, Malvern International insiders were net buyers during the last year. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Have Malvern International Insiders Traded Recently?

In the last three months, insiders bought UK£86k. But that was only a smidgen more than the UK£86k worth of sales. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Does Malvern International Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 26% of Malvern International shares, worth about UK£1.4m. 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 Do The Malvern International Insider Transactions Indicate?

Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Malvern International insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with Malvern International (including 2 which make us uncomfortable).

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.