Even if it's not a huge purchase, we think it was good to see that Peter Blum, the Independent Non-Executive Chairman of the Board of MIND Technology, Inc. (NASDAQ:MIND) recently shelled out US$58k to buy stock, at US$1.92 per share. Although the purchase is not a big one, increasing their shareholding by only 5.0%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At MIND Technology
The Chief Operating Officer Dennis Morris made the biggest insider purchase in the last 12 months. That single transaction was for US$61k worth of shares at a price of US$2.00 each. That means that even when the share price was higher than US$1.88 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months MIND Technology insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
MIND Technology 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. Our data indicates that MIND Technology insiders own about US$1.6m worth of shares (which is 6.4% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About MIND Technology Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that MIND Technology insiders are reasonably well aligned, and optimistic for the future. 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. For example, MIND Technology has 3 warning signs (and 1 which is potentially serious) we think you should know about.
Of course MIND Technology 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.
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 (at) simplywallst.com.