Non-Executive Chairman of MSC Industrial Direct Picks Up 2.3% More Stock

MSC Industrial Direct Co., Inc. (NYSE:MSM) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman, Mitchell Jacobson, recently bought a whopping US$15m worth of stock, at a price of US$84.75. While that only increased their holding size by 2.3%, it is still a big swing by our standards.

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MSC Industrial Direct Insider Transactions Over The Last Year

Notably, that recent purchase by Mitchell Jacobson is the biggest insider purchase of MSC Industrial Direct 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 US$86.68. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the MSC Industrial Direct insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 341.07k shares for US$27m. On the other hand they divested 52.90k shares, for US$4.8m. In the last twelve months there was more buying than selling by MSC Industrial Direct insiders. 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!

Check out our latest analysis for MSC Industrial Direct

MSC Industrial Direct is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of MSC Industrial Direct

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. MSC Industrial Direct insiders own about US$876m worth of shares (which is 18% of the company). 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 MSC Industrial Direct Insiders?

It is good to see the recent insider purchase. 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 MSC Industrial Direct. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of MSC Industrial Direct.

Of course MSC Industrial Direct 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 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.