Bullish Mainfreight Insiders Loaded Up On NZ$1.08m Of Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Mainfreight Limited's (NZSE:MFT) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Mainfreight Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Group MD & Director Donald Braid bought NZ$581k worth of shares at a price of NZ$58.15 per share. So it's clear an insider wanted to buy, at around the current price, which is NZ$60.79. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Mainfreight insiders may have bought shares in the last year, but they didn't sell any. 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!

View our latest analysis for Mainfreight

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Mainfreight Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Mainfreight. Overall, six insiders shelled out NZ$1.1m for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Mainfreight

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Mainfreight insiders own 20% of the company, worth about NZ$1.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Mainfreight Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Mainfreight insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Of course, the future is what matters most. So if you are interested in Mainfreight, you should check out this free report on analyst forecasts for the company.

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 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.