Usually when one insider buys stock, it may not be a monumental event. But when multiple insiders buy, as in the case of an acquisition, MFA Financial Co., Ltd. (NYSE:MFA), which sends a positive message to the company’s shareholders.
I don’t think shareholders should simply follow insider trading, but I do think it would be silly to completely ignore insider trading.
See the latest analysis from MFA Financial
MFA Financial Insider transactions in the last year
Last year’s largest insider sale was $55,000 worth of shares by senior VP and co-manager Mei Lin, at approximately $13.48 per share. Insider selling is negative for us, but if the stock sells at a lower price, it becomes more negative. The silver lining is that the sell has broken above the recent price (US$11.00). As such, we may not be able to shed much light on insider trust at its current level: Mei Lin was the only individual insider to sell last year.
Fortunately, insiders paid US$124,000 for 11.16,000 shares last year. Meanwhile, they sold his 4.06 million shares for his $55,000. Overall, MFA Financial insiders bought more than they sold last year. Below is a visual depiction of insider trading (by companies and individuals) over the last 12 months. If you want to know exactly who sold, how much and when, click the chart below.
MFA Financial isn’t the only stock that insiders are buying.For those who like to search investment win this freedom A list of growing companies that recently made insider acquisitions could be just the ticket.
MFA Financial insider recently bought shares
Over the past three months, MFA Financial has seen a large amount of insider buying. Overall, five insiders paid $119,000 for shares in the company, and none sold. This is a positive in our book because it implies a certain amount of confidence.
Looking at a company’s total insider shareholdings can help give an idea of whether they are aligned well with public shareholders. Usually, the higher the insider’s ownership, the more likely the insider has an incentive to build the company over the long term. According to our data, the MFA Financial insider seems to own his 0.7% of the company, worth about $7.6 million. Better than nothing, but I’m not overly impressed with these holdings.
So what does MFA Financial Insider Transactions tell us?
It’s certainly positive to see the recent insider purchases. We are also convinced by the long-term landscape of insider trading. But we don’t feel the same about the fact that the company is losing money.While the overall level of insider ownership is below what we would like, the transaction history shows that MFA Financial insiders are reasonably aligned and optimistic about the future. So while these insider trading help make the paper on the stock, it’s also worth knowing the risks facing this company. please Two warning signs in investment analysisone of which cannot be ignored…
If you want to check out another company – one with potentially great financials – don’t miss freedom An interesting list of companies with high return on equity and low debt.
For the purposes of this article, an insider is an individual who reports a transaction to the relevant regulatory body. Currently, we consider open market transactions and private disposals, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative materials. Is not …
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