Stock Analysis

Alvaro Gomez-Reino Is The CFO & Executive Director of John Menzies plc (LON:MNZS) And They Just Picked Up 167% More Shares

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LSE:MNZS
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Investors who take an interest in John Menzies plc (LON:MNZS) should definitely note that the CFO & Executive Director, Alvaro Gomez-Reino, recently paid UK£1.62 per share to buy UK£81k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 167%, potentially signalling some real optimism.

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The Last 12 Months Of Insider Transactions At John Menzies

In fact, the recent purchase by Alvaro Gomez-Reino was the biggest purchase of John Menzies shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of UK£1.90 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the John Menzies insiders decided to buy shares at close to current prices.

In the last twelve months John Menzies insiders were buying shares, but not selling. The average buy price was around UK£2.03. This is nice to see since it implies that insiders might see value around current prices. 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!

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LSE:MNZS Insider Trading Volume November 26th 2020

John Menzies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does John Menzies Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests John Menzies insiders own 1.7% of the company, worth about UK£2.8m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Do The John Menzies Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that John Menzies 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 John Menzies. Case in point: We've spotted 2 warning signs for John Menzies you should be aware of.

Of course John Menzies 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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