It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in MYOS RENS Technology Inc. (NASDAQ:MYOS).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At MYOS RENS Technology
CEO & Director Joseph Mannello made the biggest insider purchase in the last 12 months. That single transaction was for US$250k worth of shares at a price of US$1.46 each. That implies that an insider found the current price of US$1.51 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. The good news for MYOS RENS Technology share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 205k shares worth US$300k. While MYOS RENS Technology insiders bought shares last year, they didn’t sell. The chart below shows insider transactions (by 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!
Insider Ownership of MYOS RENS Technology
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that MYOS RENS Technology insiders own 27% of the company, worth about US$3.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About MYOS RENS Technology Insiders?
It doesn’t really mean much that no insider has traded MYOS RENS Technology shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in MYOS RENS Technology 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 MYOS RENS Technology, you should check out this free report on analyst forecasts for the company.
But note: MYOS RENS Technology 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.