Yahoo Finance Insider Stock Buying Reaches US$784.2k On Motorcar Parts of America
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Motorcar Parts of America, Inc. (NASDAQ:MPAA), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Motorcar Parts of America
Motorcar Parts of America Insider Transactions Over The Last Year
The Director Douglas Trussler made the biggest insider purchase in the last 12 months. That single transaction was for US$375k worth of shares at a price of US$7.50 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.53. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 107.45k shares for US$784k. On the other hand they divested 11.67k shares, for US$99k. Overall, Motorcar Parts of America insiders were net buyers during the last year. 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!
Motorcar Parts of America is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Motorcar Parts of America Have Sold Stock Recently
We've seen more insider selling than insider buying at Motorcar Parts of America recently. In total, Independent Director Rudolph Borneo sold US$63k worth of shares in that time. On the flip side, Independent Director David Bryan spent US$11k on purchasing shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Does Motorcar Parts of America Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. From our data, it seems that Motorcar Parts of America insiders own 5.6% of the company, worth about US$9.4m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Motorcar Parts of America Tell Us?
The stark truth for Motorcar Parts of America is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. But we'd like it if insiders owned more stock, overall. So overall it's hard to argue insiders are bullish. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Motorcar Parts of America. For example, Motorcar Parts of America has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.
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.
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.
