雅虎香港財經 Memphasys Reaches AU$20m Market Cap Benefiting Insider Stock Buying \
Insiders who bought Memphasys Limited (ASX:MEM) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$4.8m as a result of the stock's 31% gain over the same period. As a result, their original purchase of AU$144k worth of stock is now worth AU$163k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Memphasys
The Last 12 Months Of Insider Transactions At Memphasys
The MD, CEO & Director Alison Coutts made the biggest insider purchase in the last 12 months. That single transaction was for AU$99k worth of shares at a price of AU$0.02 each. That means that an insider was happy to buy shares at around the current price of AU$0.021. 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 Memphasys share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 7.76m shares for AU$144k. On the other hand they divested 1.00m shares, for AU$20k. In total, Memphasys insiders bought more than they sold over the last year. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Memphasys
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Memphasys insiders own 58% of the company, worth about AU$12m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Memphasys Insiders?
The fact that there have been no Memphasys insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Memphasys insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. Every company has risks, and we've spotted 6 warning signs for Memphasys (of which 3 are a bit concerning!) you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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