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With Made Tech Group Up 11%, Insider Buyers Count Their Returns

editorial-team@simplywallst.com (Simply Wall St)
·3-min read

Made Tech Group Plc (LON:MTEC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a UK£2.6m addition to the company’s market value. As a result, the stock they originally bought for UK£186.1k is now worth UK£205.3k.

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.

Check out our latest analysis for Made Tech Group

The Last 12 Months Of Insider Transactions At Made Tech Group

The Founder Rory MacDonald made the biggest insider purchase in the last 12 months. That single transaction was for UK£154k worth of shares at a price of UK£0.18 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.17). 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.

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While Made Tech Group insiders bought shares during the last year, they didn't sell. The average buy price was around UK£0.15. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 undervalued small cap companies that insiders are buying.

Insider Ownership Of Made Tech Group

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. Made Tech Group insiders own about UK£12m worth of shares (which is 47% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Made Tech Group Insider Transactions Indicate?

The fact that there have been no Made Tech Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Made Tech Group insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Made Tech Group. For instance, we've identified 3 warning signs for Made Tech Group (2 shouldn't be ignored) you should be aware of.

Of course Made Tech Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com