Yahoo Finance The Independent Vice Chairman & Lead Independent Director of Maxim Power Corp. (TSE:MXG), W. Wilson, Just Bought 3.4% More Shares
Those following along with Maxim Power Corp. (TSE:MXG) will no doubt be intrigued by the recent purchase of shares by W. Wilson, Independent Vice Chairman & Lead Independent Director of the company, who spent a stonking CA$2.0m on stock at an average price of CA$3.50. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.4%.
Check out our latest analysis for Maxim Power
The Last 12 Months Of Insider Transactions At Maxim Power
In fact, the recent purchase by W. Wilson was the biggest purchase of Maxim Power shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$3.81 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Maxim Power share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 1.15m shares for CA$4.1m. On the other hand they divested 40.42k shares, for CA$151k. In total, Maxim Power insiders bought more than they sold over the last year. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Maxim Power Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 39% of Maxim Power shares, worth about CA$75m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Maxim Power 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. When combined with notable insider ownership, these factors suggest Maxim Power insiders are well aligned, and that they may think the share price is too low. 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. At Simply Wall St, we found 2 warning signs for Maxim Power that deserve your attention before buying any shares.
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, 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.
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