Potential Maximus, Inc. (NYSE:MMS) shareholders may wish to note that the Independent Director, Raymond Ruddy, recently bought US$401k worth of stock, paying US$69.91 for each share. Although the purchase only increased their holding by 5.5%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Maximus
The President, Bruce Caswell, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$57.87 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$71.22. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 11% of Bruce Caswell's stake.
Over the last year, we can see that insiders have bought 49.37k shares worth US$3.0m. But they sold 45.09k shares for US$2.6m. In the last twelve months there was more buying than selling by Maximus insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Maximus 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.
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 Maximus insiders own 1.0% of the company, worth about US$44m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Maximus Tell Us?
The insider sales have outweighed the insider buying, at Maximus, in the last three months. In contrast, they appear keener if you look at the last twelve months. And insiders do own shares. So the recent selling doesn't worry us too much. 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. Case in point: We've spotted 4 warning signs for Maximus you should be aware of, and 1 of these makes us a bit uncomfortable.
Of course Maximus 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, 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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