Yahoo Finance Bullish insiders at MAV Beauty Brands Inc. (TSE:MAV) loaded up on US$821k of stock earlier this year
Multiple insiders secured a larger position in MAV Beauty Brands Inc. (TSE:MAV) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for MAV Beauty Brands
MAV Beauty Brands Insider Transactions Over The Last Year
The CEO & President Serge Jureidini made the biggest insider purchase in the last 12 months. That single transaction was for CA$684k worth of shares at a price of CA$1.40 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.25). 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. To us, it's very important to consider the price insiders pay for shares. 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.
In the last twelve months MAV Beauty Brands insiders were buying shares, but not selling. 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!
MAV Beauty Brands is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at MAV Beauty Brands Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at MAV Beauty Brands. In total, insiders bought CA$809k worth of shares in that time, and we didn't record any sales whatsoever. 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. MAV Beauty Brands insiders own about CA$14m worth of shares. That equates to 30% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At MAV Beauty Brands Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of MAV Beauty Brands we think they are probably pretty confident of a bright future. 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. Every company has risks, and we've spotted 3 warning signs for MAV Beauty Brands you should know about.
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, but not derivative transactions.
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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.
