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Insiders who bought into RHI Magnesita N.V. (LON:RHIM) earlier this year might wish they'd invested more as stock gained 3.3%

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RHI Magnesita N.V. (LON:RHIM) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 3.3%, resulting in a UK£50m rise in the company's market capitalisation. As a result, the stock they originally bought for €120k is now worth €122k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for RHI Magnesita

The Last 12 Months Of Insider Transactions At RHI Magnesita

In fact, the recent purchase by Stefan Borgas was the biggest purchase of RHI Magnesita 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 UK£32.86 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for RHI Magnesita share holders is that insiders were buying at near the current price.

While RHI Magnesita insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

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.

RHI Magnesita Insiders Bought Stock Recently

Over the last quarter, RHI Magnesita insiders have spent a meaningful amount on shares. Overall, two insiders shelled out UK£111k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Does RHI Magnesita 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. We usually like to see fairly high levels of insider ownership. It appears that RHI Magnesita insiders own 4.2% of the company, worth about UK£65m. 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 RHI Magnesita Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in RHI Magnesita shares, given these transactions (along with notable insider ownership of the company). 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 4 warning signs we've spotted with RHI Magnesita (including 1 which is a bit concerning).

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.

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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