Trade Alert: The Non-Executive Director Of MAS Real Estate Inc. (JSE:MSP), Melt Hamman, Has Just Spent €940k Buying 397% More Shares

By
Simply Wall St
Published
September 12, 2021
JSE:MSP
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Melt Hamman, the Non-Executive Director of MAS Real Estate Inc. (JSE:MSP) recently shelled out R940k to buy stock, at R18.79 per share. While that isn't the hugest buy, it actually boosted their shareholding by 397%, which is good to see.

View our latest analysis for MAS Real Estate

MAS Real Estate Insider Transactions Over The Last Year

Notably, that recent purchase by Melt Hamman is the biggest insider purchase of MAS Real Estate shares that we've seen in the last year. That means that even when the share price was higher than R18.78 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

MAS Real Estate insiders may have bought shares in the last year, but they didn't sell any. Their average price was about R16.16. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
JSE:MSP Insider Trading Volume September 13th 2021

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 of MAS Real Estate

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 suggests MAS Real Estate insiders own 0.6% of the company, worth about R73m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

So What Does This Data Suggest About MAS Real Estate Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in MAS Real Estate shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for MAS Real Estate (2 make us uncomfortable!) and we strongly recommend you look at them before investing.

Of course MAS Real Estate 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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