Mayfield Group Holdings Limited's (ASX:MYG) value has fallen 15% in the last week, but insiders who sold AU$41m worth of stock over the last year have had less success. The average selling price of AU$2.64 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Mayfield Group Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Jens Neiser, for AU$28m worth of shares, at about AU$2.84 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$1.80. So it may not shed much light on insider confidence at current levels. Notably Jens Neiser was also the biggest buyer, having purchased AU$2.5m worth of shares.
In the last twelve months insiders purchased 1.46m shares for AU$2.5m. On the other hand they divested 15.49m shares, for AU$41m. Over the last year we saw more insider selling of Mayfield Group Holdings shares, than buying. The average sell price was around AU$2.64. It is certainly not great to see that insiders have sold shares in the company. But we note that the selling, on average, was at well above the recently traded price of AU$1.80. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Mayfield Group Holdings
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Mayfield Group Holdings Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Mayfield Group Holdings. Not only was there no selling that we can see, but they collectively bought AU$1.5m worth of shares. This makes one think the business has some good points.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Mayfield Group Holdings insiders own 45% of the company, worth about AU$102m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Mayfield Group Holdings Tell Us?
It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. The recent buying by some insiders , along with high insider ownership, suggest that Mayfield Group Holdings insiders are fairly aligned, and optimistic. 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 that end, you should learn about the 2 warning signs we've spotted with Mayfield Group Holdings (including 1 which doesn't sit too well with us).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.