Mortgage Advice Bureau (Holdings) plc (LON:MAB1) has been making waves in the financial sector, and for good reason. Insider activity has been on the rise, with multiple insiders purchasing stock in large numbers last year. This is great news for shareholders, as it indicates confidence in the company’s future.
Insider Transactions
When a single insider purchases stock, it’s not typically a major deal. However, when multiple insiders purchase stock, like in Mortgage Advice Bureau (Holdings) plc’s instance, it’s a strong indication of their confidence in the company’s future. Although we shouldn’t simply follow insider transactions, it would be foolish to ignore them altogether.
The Deputy CEO & Director, Benjamin Thompson, made the biggest insider purchase in the last 12 months. That single transaction was for £100k worth of shares at a price of £5.95 each. This suggests that insiders have had confidence in the company’s future, and their view may have changed since the purchase was made.
Insider transactions at Mortgage Advice Bureau (Holdings) plc
In the last twelve months, Mortgage Advice Bureau (Holdings) insiders were buying shares, but not selling. Their average price was about £7.54. These transactions suggest that insiders have considered the current price attractive.
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. Mortgage Advice Bureau (Holdings) insiders own about £73m worth of shares, which equates to 20% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
Insider ownership at Mortgage Advice Bureau (Holdings) plc
So, what does this data suggest about Mortgage Advice Bureau (Holdings) insiders? It is good to see recent purchasing, and an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Mortgage Advice Bureau (Holdings), we think they are probably pretty confident of a bright future.
‘It is good to see recent purchasing, and an analysis of the transactions over the last year also gives us confidence.’
Mortgage Advice Bureau (Holdings) plc’s future looks bright
Of course, it’s helpful to know what insiders are doing in terms of buying or selling, but it’s also helpful to know the risks that a particular company is facing. Every company has risks, and we’ve spotted some warning signs for Mortgage Advice Bureau (Holdings) that you should know about.
