Had insiders known Mortgage Advice Bureau (Holdings) plc (LON:MAB1) would hit UK£394m they might have invested more last year

Mortgage Advice Bureau (Holdings) plc (LON:MAB1) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a UK£47m addition to the company’s market value. Put another way, the original UK£133k acquisition is now worth UK£147k.

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.

Check out our latest analysis for Mortgage Advice Bureau (Holdings)

The Last 12 Months Of Insider Transactions At Mortgage Advice Bureau (Holdings)

The Deputy CEO & Director Benjamin Thompson made the biggest insider purchase in the last 12 months. That single transaction was for UK£100k worth of shares at a price of UK£5.95 each. We do like to see buying, but this purchase was made at well below the current price of UK£6.90. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Mortgage Advice Bureau (Holdings) insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Are Mortgage Advice Bureau (Holdings) Insiders Buying Or Selling?

We saw some Mortgage Advice Bureau (Holdings) insider buying shares in the last three months. Insiders purchased UK£5.6k worth of shares in that period. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Mortgage Advice Bureau (Holdings) Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 20% of Mortgage Advice Bureau (Holdings) shares, worth about UK£79m. 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 Do The Mortgage Advice Bureau (Holdings) Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Mortgage Advice Bureau (Holdings) and we see no evidence to suggest they are worried about the future. 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. Every company has risks, and we've spotted 5 warning signs for Mortgage Advice Bureau (Holdings) you should know about.

Of course Mortgage Advice Bureau (Holdings) may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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.