Independent Non-Executive Chairman of the Board Jeffrey Nodland Just Bought 22% More Shares In McBride plc (LON:MCB)

Whilst it may not be a huge deal, we thought it was good to see that the McBride plc (LON:MCB) Independent Non-Executive Chairman of the Board, Jeffrey Nodland, recently bought UK£69k worth of stock, for UK£0.83 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 22%.

See our latest analysis for McBride

McBride Insider Transactions Over The Last Year

Notably, that recent purchase by Jeffrey Nodland is the biggest insider purchase of McBride shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.79). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While McBride insiders bought shares during the last year, they didn't sell. They paid about UK£0.66 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

McBride is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does McBride Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From what we can see in our data, insiders own only about UK£721k worth of McBride shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Do The McBride Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that McBride insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing McBride. Every company has risks, and we've spotted 2 warning signs for McBride you should know about.

But note: McBride 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. 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.
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