My Food Bag Group's Market Cap Drops To NZ$29m Leaving Insiders With Losses

The recent price decline of 14% in My Food Bag Group Limited's (NZSE:MFB) stock may have disappointed insiders who bought NZ$1.59m worth of shares at an average price of NZ$0.13 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth NZ$1.42m, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for My Food Bag Group

The Last 12 Months Of Insider Transactions At My Food Bag Group

The Non-Executive Director Cecilia Robinson made the biggest insider purchase in the last 12 months. That single transaction was for NZ$875k worth of shares at a price of NZ$0.13 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$0.12). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months My Food Bag Group 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. By clicking on the graph below, you can see the precise details of each insider transaction!

My Food Bag Group 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.

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. Insiders own 12% of My Food Bag Group shares, worth about NZ$3.4m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About My Food Bag Group Insiders?

It doesn't really mean much that no insider has traded My Food Bag Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if My Food Bag Group insiders bought more shares in 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. In terms of investment risks, we've identified 3 warning signs with My Food Bag Group and understanding these should be part of your investment process.

But note: My Food Bag Group 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 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.