Insiders are sitting comfortably on a $2.0 million profit after buying $3.1 million in Membership Collective Group Inc. (NYSE:MCG) stock last year
Insiders who bought Membership Collective Group Inc. (NYSE:MCG) stocks over the last 12 months are unlikely to be hit hard by the stock’s 14 percent drop over the past week. After accounting for the recent loss, the $3.1 million shares they bought are now worth $5.1 million, suggesting their investment has produced a positive return.
While insider transactions aren’t the most important thing when it comes to long-term investing, logically you should pay attention to whether insiders are buying or selling stocks.
Check out our latest analysis for the Membership Collective Group
Membership Collective Group insider transactions over the past year
Independent director Mark Ein made the largest insider buy in the past 12 months. This single transaction involved $1.8 million in shares at a price of $4.09 each. Although the purchase was made at a significantly lower price than the current price ($6.34), we still see insider buying as a positive. Since it was at a lower valuation, it doesn’t tell us much whether insiders might find today’s price attractive.
Insiders bought 806,96,000 shares for $3.1 million in the last 12 months. But insiders sold 243,44,000 shares worth $1.7 million. Overall, Membership Collective Group insiders were net buyers over the past year. Below is a visual representation of insider transactions (both corporate and individual) over the past 12 months. By clicking on the graphic below you can see the exact details of each insider transaction!
There are many other companies where insiders buy stock. You probably do not want to miss this free List of growing companies that insiders are buying.
Membership Collective Group insiders recently bought shares
Over the past three months, we have observed significant insider buying from the Membership Collective Group. In particular, insider Richard Caring bought $1.1 million worth of stock during this period, and we didn’t see any sales. This could be interpreted as a positive outlook.
Many investors like to check how much of a company is owned by insiders. Typically, the higher the insider ownership, the more likely it is that insiders will be incentivized to build the company over the long term. Membership Collective Group insiders own 35% of the company, which is currently valued at approximately $430 million based on its recent stock price. This type of significant insider ownership generally increases the chance that the company will be run in the interests of all shareholders.
What could the insider transactions at the Membership Collective Group tell us?
The recent insider buy is encouraging. We also gain confidence from the longer-term picture of insider transactions. However, we note that the company has not made a profit in the last 12 months, which makes us cautious. When you factor in the high percentage of insiders, it certainly seems like insiders are positive about the Membership Collective Group. Looks promising! So while it’s helpful to know what insiders are doing in relation to buying or selling, it’s also helpful to know the risks a particular company faces. Case in point: We discovered it 3 Warning Signs for Membership Collective Group You should be aware of this, and one of them is a bit concerning.
Naturally Membership Collective Group might not be the best stock to buy. You might want to see this free Collection of high quality companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulator. We currently account for open market transactions and private dispositions, but not derivatives transactions.
The assessment is complex, but we help to simplify it.
Find out if the Membership Collective Group might be over- or under-rated by checking out our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.
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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.