Insider Stock Buying Reaches NZ$2.33m On Mainfreight

In the last year, multiple insiders have substantially increased their holdings of Mainfreight Limited (NZSE:MFT) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Mainfreight

Mainfreight Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Founding Owner & Executive Chairman Bruce Plested for NZ$1.2m worth of shares, at about NZ$68.06 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$61.00). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 33.70k shares for NZ$2.3m. But insiders sold 10.72k shares worth NZ$799k. In the last twelve months there was more buying than selling by Mainfreight insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at 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. It's great to see that Mainfreight insiders own 18% of the company, worth about NZ$1.1b. 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 Does This Data Suggest About Mainfreight Insiders?

It doesn't really mean much that no insider has traded Mainfreight shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Mainfreight insiders think the business has merit. 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.

But note: Mainfreight 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.