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Non-Executive Chairman of MSC Industrial Direct Mitchell Jacobson Buys 3.1% More Shares
MSC Industrial Direct Co., Inc. (NYSE:MSM) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman, Mitchell Jacobson, recently bought a whopping US$29m worth of stock, at a price of US$116. While that only increased their holding size by 3.1%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At MSC Industrial Direct
In fact, the recent purchase by Mitchell Jacobson was the biggest purchase of MSC Industrial Direct shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$123. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for MSC Industrial Direct share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 461.78k shares worth US$47m. But they sold 1.80k shares for US$156k. In the last twelve months there was more buying than selling by MSC Industrial Direct insiders. They paid about US$102 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for MSC Industrial Direct
MSC Industrial Direct is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. MSC Industrial Direct insiders own 19% of the company, currently worth about US$1.2b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About MSC Industrial Direct Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about MSC Industrial Direct. Nice! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for MSC Industrial Direct.
Of course MSC Industrial Direct may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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