Donald Braid Is The Group MD & Director of Mainfreight Limited (NZSE:MFT) And Just Spent NZ$777k On Shares

Mainfreight Limited (NZSE:MFT) shareholders (or potential shareholders) will be happy to see that the Group MD & Director, Donald Braid, recently bought a whopping NZ$777k worth of stock, at a price of NZ$77.66. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.3%.

Check out our latest analysis for Mainfreight

The Last 12 Months Of Insider Transactions At Mainfreight

Over the last year, we can see that the biggest insider sale was by the Founding Owner & Executive Chairman, Bruce Plested, for NZ$75m worth of shares, at about NZ$75.00 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of NZ$85.00. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 5.8% of Bruce Plested's stake.

Over the last year, we can see that insiders have bought 50.97k shares worth NZ$4.0m. On the other hand they divested 1.14m shares, for NZ$87m. All up, insiders sold more shares in Mainfreight than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Mainfreight insiders own 18% of the company, currently worth about NZ$1.5b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Mainfreight Insiders?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that Mainfreight insiders are fairly aligned, and optimistic. 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.

Of course Mainfreight 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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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.