The Independent Director of MIPS AB (publ) (STO:MIPS), Thomas Brautigam, Just Bought A Few More Shares

By
Simply Wall St
Published
May 14, 2022
OM:MIPS
Source: Shutterstock

Potential MIPS AB (publ) (STO:MIPS) shareholders may wish to note that the Independent Director, Thomas Brautigam, recently bought kr1.8m worth of stock, paying kr608 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for MIPS

MIPS Insider Transactions Over The Last Year

Notably, that recent purchase by Thomas Brautigam is the biggest insider purchase of MIPS shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of kr627. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the MIPS insiders decided to buy shares at close to current prices.

In the last twelve months MIPS 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
OM:MIPS Insider Trading Volume May 14th 2022

MIPS is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. MIPS insiders own about kr291m worth of shares. That equates to 1.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At MIPS Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about MIPS. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with MIPS (including 1 which doesn't sit too well with us).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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