Immix Biopharma, Inc. (NASDAQ:IMMX) insiders recover some losses but still US$152k away from matching original investment

By
Simply Wall St
Published
March 17, 2022
NasdaqCM:IMMX
Source: Shutterstock

Insiders who bought US$297k worth of Immix Biopharma, Inc. (NASDAQ:IMMX) stock in the last year recovered part of their losses as the stock rose by 23% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$152k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Immix Biopharma

Immix Biopharma Insider Transactions Over The Last Year

The Director Jason Hsu 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$5.00 each. That means that an insider was happy to buy shares at above the current price of US$2.43. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Immix Biopharma insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqCM:IMMX Insider Trading Volume March 16th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders at Immix Biopharma Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Immix Biopharma. Not only was there no selling that we can see, but they collectively bought US$288k worth of shares. This is a positive in our book as it implies some confidence.

Does Immix Biopharma Boast High Insider Ownership?

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. Insiders own 21% of Immix Biopharma shares, worth about US$6.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Immix Biopharma Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. 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 Immix Biopharma insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Immix Biopharma. Be aware that Immix Biopharma is showing 5 warning signs in our investment analysis, and 3 of those are concerning...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.