We often see insiders buying up shares in companies that perform well over the long term. 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 Matinas BioPharma Holdings, Inc. (NYSEMKT:MTNB), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for Matinas BioPharma Holdings
Matinas BioPharma Holdings Insider Transactions Over The Last Year
Chief Financial Officer Keith Kucinski made the biggest insider purchase in the last 12 months. That single transaction was for US$115k worth of shares at a price of US$1.23 each. That means that even when the share price was higher than US$1.19 (the recent price), an insider wanted to purchase shares. 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. To us, it’s very important to consider the price insiders pay for shares. 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.
While Matinas BioPharma Holdings insiders bought shares last year, they didn’t sell. The average buy price was around US$0.94. We don’t deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today’s share price. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Matinas BioPharma Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Matinas BioPharma Holdings insiders own 5.9% of the company, worth about US$14m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Matinas BioPharma Holdings Tell Us?
It doesn’t really mean much that no insider has traded Matinas BioPharma Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Matinas BioPharma Holdings and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Matinas BioPharma Holdings, you should check out this free report on analyst forecasts for the company.
Of course Matinas BioPharma Holdings 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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