Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of MFA Financial, Inc. (NYSE:MFA), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for MFA Financial

The Last 12 Months Of Insider Transactions At MFA Financial

Over the last year, we can see that the biggest insider sale was by the Senior VP & Co-Controller, Mei Lin, for US$55k worth of shares, at about US$13.48 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$10.83). So it may not tell us anything about how insiders feel about the current share price. Mei Lin was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid US$119k for 11.10k shares. On the other hand they divested 4.06k shares, for US$55k. Overall, MFA Financial insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of MFA Financial

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that MFA Financial insiders own 0.7% of the company, worth about US$7.7m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About MFA Financial Insiders?

It doesn't really mean much that no insider has traded MFA Financial shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if MFA Financial insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, MFA Financial has 3 warning signs (and 2 which are concerning) we think you should know about.

But note: MFA Financial 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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