Insider Buying: The Microsaic Systems plc (LON:MSYS) Non-Executive Chairman Just Bought 180% More Shares

Microsaic Systems plc (LON:MSYS) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman, Gerard Brandon, recently bought a whopping UK£9.0m worth of stock, at a price of UK£0.10. That increased their holding by a full 180%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

See our latest analysis for Microsaic Systems

Microsaic Systems Insider Transactions Over The Last Year

In fact, the recent purchase by Gerard Brandon was the biggest purchase of Microsaic Systems shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than UK£0.0027 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

Over the last year, we can see that insiders have bought 221.00m shares worth UK£22m. On the other hand they divested 5.35m shares, for UK£209k. Overall, Microsaic Systems insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Microsaic Systems 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. From looking at our data, insiders own UK£708k worth of Microsaic Systems stock, about 4.2% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Microsaic Systems Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Microsaic Systems insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Microsaic Systems. Our analysis shows 5 warning signs for Microsaic Systems (3 are a bit concerning!) and we strongly recommend you look at these before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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