Mesoblast Insiders Added US$67.8m Of Stock To Their Holdings

In the last year, multiple insiders have substantially increased their holdings of Mesoblast Limited (ASX:MSB) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Mesoblast

The Last 12 Months Of Insider Transactions At Mesoblast

Over the last year, we can see that the biggest insider purchase was by insider Gregory George for AU$15m worth of shares, at about AU$0.30 per share. We do like to see buying, but this purchase was made at well below the current price of AU$1.29. 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.

In the last twelve months Mesoblast insiders were buying shares, but not selling. Their average price was about AU$0.57. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Mesoblast is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Mesoblast Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Mesoblast. insider Gregory George spent AU$12m on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Mesoblast

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. Mesoblast insiders own about AU$355m worth of shares (which is 24% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Mesoblast Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Mesoblast insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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 - Mesoblast has 1 warning sign we think you should be aware of.

Of course Mesoblast 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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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.