Insider Buying: The Genworth Mortgage Insurance Australia Limited (ASX:GMA) Independent Chairman of the Board Just Bought 55% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Genworth Mortgage Insurance Australia Limited (ASX:GMA) Independent Chairman of the Board, Ian MacDonald, recently bought AU$75k worth of stock, for AU$1.60 per share. While that isn't the hugest buy, it actually boosted their shareholding by 55%, which is good to see.
View our latest analysis for Genworth Mortgage Insurance Australia
The Last 12 Months Of Insider Transactions At Genworth Mortgage Insurance Australia
The Independent Non Executive Director Duncan West made the biggest insider purchase in the last 12 months. That single transaction was for AU$174k worth of shares at a price of AU$3.00 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.60). 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. To us, it's very important to consider the price insiders pay for 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.
Genworth Mortgage Insurance Australia insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$2.28. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Genworth Mortgage Insurance Australia is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Genworth Mortgage Insurance Australia Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own AU$2.2m worth of Genworth Mortgage Insurance Australia stock, about 0.3% of the company. We consider this fairly low insider ownership.
So What Does This Data Suggest About Genworth Mortgage Insurance Australia Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Genworth Mortgage Insurance Australia stock. 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. At Simply Wall St, we found 1 warning sign for Genworth Mortgage Insurance Australia that deserve your attention before buying any shares.
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.
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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