Non-Executive Director & Co-Founder Raymond Chamberlain Just Bought 5.3% More Shares In Mercia Asset Management PLC (LON:MERC)
Potential Mercia Asset Management PLC (LON:MERC) shareholders may wish to note that the Non-Executive Director & Co-Founder, Raymond Chamberlain, recently bought UK£240k worth of stock, paying UK£0.20 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.3%.
Check out our latest analysis for Mercia Asset Management
The Last 12 Months Of Insider Transactions At Mercia Asset Management
In fact, the recent purchase by Non-Executive Director & Co-Founder Raymond Chamberlain was not their only acquisition of Mercia Asset Management shares this year. They previously made an even bigger purchase of UK£1m worth of shares at a price of UK£0.25 per share. That means that even when the share price was higher than UK£0.21 (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. To us, it's very important to consider the price insiders pay for shares is very important. 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.
Mercia Asset Management insiders may have bought shares in the last year, but they didn't sell any. 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!
Mercia Asset Management is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Mercia Asset Management Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 13% of Mercia Asset Management shares, worth about UK£12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Mercia Asset Management Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Mercia Asset Management insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Mercia Asset Management that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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. 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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