Yahoo Finance Positive Signs As Multiple Insiders Buy Major Drilling Group International Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Major Drilling Group International Inc.'s (TSE:MDI) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Major Drilling Group International
The Last 12 Months Of Insider Transactions At Major Drilling Group International
The Vice President of Human Resources & Safety Ben Graham made the biggest insider purchase in the last 12 months. That single transaction was for CA$175k worth of shares at a price of CA$8.76 each. So it's clear an insider wanted to buy, at around the current price, which is CA$9.08. 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 Major Drilling Group International share holders is that insiders were buying at near the current price.
Major Drilling Group International insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Major Drilling Group International is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Major Drilling Group International Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Major Drilling Group International. Overall, two insiders shelled out CA$180k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
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. Based on our data, Major Drilling Group International insiders have about 0.4% of the stock, worth approximately CA$3.0m. We prefer to see high levels of insider ownership.
So What Do The Major Drilling Group International Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Major Drilling Group International insiders are reasonably well aligned, and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Major Drilling Group International.
Of course Major Drilling Group International 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
