A number of insiders bought Mondi plc (LON:MNDI) stock last year, which is great news for shareholders

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Mondi plc (LON:MNDI), that sends out a positive message to the company's shareholders.

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.

However if you'd rather see where the opportunities and risks are within MNDI's industry, you can check out our analysis on the XX Forestry industry.

Mondi Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Group CFO & Executive Director Michael Powell for UK£99k worth of shares, at about UK£17.64 per share. That means that even when the share price was higher than UK£13.81 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Mondi 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!

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.

Insider Ownership Of Mondi

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data suggests Mondi insiders own 0.05% of the company, worth about UK£3.0m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Mondi Insiders?

It doesn't really mean much that no insider has traded Mondi shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Mondi insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Mondi you should be aware of, and 1 of these makes us a bit uncomfortable.

Of course Mondi 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.