Don't Ignore The Insider Selling In Mpact

We note that the Mpact Limited (JSE:MPT) Managing Director of Paper Manufacturing Division, Hugh Thompson, recently sold R1.5m worth of stock for R29.75 per share. On the bright side, that's just a small sale and only reduced their holding by 7.0%.

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The Last 12 Months Of Insider Transactions At Mpact

In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Bruce Strong, sold R13m worth of shares at a price of R27.00 per share. That means that even when the share price was below the current price of R28.25, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 27% of Bruce Strong's stake.

All up, insiders sold more shares in Mpact than they bought, over the last year. 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!

Check out our latest analysis for Mpact

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Does Mpact Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Mpact insiders own about R93m worth of shares (which is 2.2% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Mpact Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mpact. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Mpact.

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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.