In the last year, multiple insiders have substantially increased their holdings of MotorCycle Holdings Limited (ASX:MTO) stock, indicating that insiders’ optimism about the company’s prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for MotorCycle Holdings
The Last 12 Months Of Insider Transactions At MotorCycle Holdings
In the last twelve months, the biggest single purchase by an insider was when insider Hamish Douglass bought AU$5.3m worth of shares at a price of AU$1.55 per share. That means that an insider was happy to buy shares at around the current price of AU$1.66. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we’re pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid AU$5.3m for 3.41m shares. On the other hand they divested 10.70k shares, for AU$18k. In the last twelve months there was more buying than selling by MotorCycle Holdings 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!
MotorCycle Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At MotorCycle Holdings Have Bought Stock Recently
Over the last quarter, MotorCycle Holdings insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$5.3m for shares in the company — and none sold. This is a positive in our book as it implies some confidence.
Does MotorCycle Holdings Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. MotorCycle Holdings insiders own 46% of the company, currently worth about AU$56m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At MotorCycle Holdings Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about MotorCycle Holdings. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 4 warning signs for MotorCycle Holdings you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.