Potential MasterBrand, Inc. (NYSE:MBC) shareholders may wish to note that the Independent Director, Robert Crisci, recently bought US$282k worth of stock, paying US$14.08 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 53%.

View our latest analysis for MasterBrand

The Last 12 Months Of Insider Transactions At MasterBrand

Notably, that recent purchase by Independent Director Robert Crisci was not the only time they bought MasterBrand shares this year. Earlier in the year, they paid US$15.39 per share in a US$308k purchase. That means that an insider was happy to buy shares at above the current price of US$13.79. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid US$688k for 46.99k shares. But insiders sold 22.81k shares worth US$366k. In total, MasterBrand insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

MasterBrand 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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that MasterBrand insiders own 0.7% of the company, worth about US$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At MasterBrand Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of MasterBrand we think they are probably pretty confident of a bright future. 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. For example - MasterBrand has 1 warning sign we think you should be aware of.

But note: MasterBrand may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.