Are Insiders Buying Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS) Stock?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.

View our latest analysis for Marinus Pharmaceuticals

The Last 12 Months Of Insider Transactions At Marinus Pharmaceuticals

CEO & Director Scott Braunstein made the biggest insider purchase in the last 12 months. That single transaction was for US$125k worth of shares at a price of US$1.25 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.26. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.

You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGM:MRNS Recent Insider Trading, January 21st 2020
NasdaqGM:MRNS Recent Insider Trading, January 21st 2020

Marinus Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Marinus Pharmaceuticals insiders have about 0.7% of the stock, worth approximately US$1.2m. I generally like to see higher levels of ownership.

So What Do The Marinus Pharmaceuticals Insider Transactions Indicate?

It’s certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don’t feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Marinus Pharmaceuticals insiders are expecting a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Marinus Pharmaceuticals 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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