Marina Berlusconi Spends €1.1m On MFE-Mediaforeurope Stock

Those following along with MFE-Mediaforeurope N.V. (BIT:MFEB) will no doubt be intrigued by the recent purchase of shares by Marina Berlusconi, Non-Executive Director of the company, who spent a stonking €1.1m on stock at an average price of €4.26. While that only increased their holding size by 0.1%, it is still a big swing by our standards.

Check out our latest analysis for MFE-Mediaforeurope

The Last 12 Months Of Insider Transactions At MFE-Mediaforeurope

Notably, that recent purchase by Marina Berlusconi is the biggest insider purchase of MFE-Mediaforeurope 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 €4.19). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Marina Berlusconi.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

MFE-Mediaforeurope is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own €1.4m worth of MFE-Mediaforeurope stock, about 0.07% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

What Might The Insider Transactions At MFE-Mediaforeurope Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that MFE-Mediaforeurope insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with MFE-Mediaforeurope and understanding them should be part of your investment process.

Of course MFE-Mediaforeurope 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 of direct interests only, but not derivative transactions or indirect interests.

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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.