MBX Biosciences Up 28%, Insider Buyers Are Up 19%

Last week, MBX Biosciences, Inc. (NASDAQ:MBX) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 28% last week, resulting in a US$89m increase in the company's market worth, implying a 19% gain on their initial purchase. In other words, the original US$579.8k purchase is now worth US$692.3k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

We've discovered 4 warning signs about MBX Biosciences. View them for free.

The Last 12 Months Of Insider Transactions At MBX Biosciences

The CEO, President & Director Peter Hawryluk made the biggest insider purchase in the last 12 months. That single transaction was for US$535k worth of shares at a price of US$10.69 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$12.00. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months MBX Biosciences insiders were buying shares, but not selling. 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!

See our latest analysis for MBX Biosciences

MBX Biosciences 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.

MBX Biosciences Insiders Bought Stock Recently

We saw some MBX Biosciences insider buying shares in the last three months. Independent Director Ora Pescovitz bought US$45k worth of shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does MBX Biosciences Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that MBX Biosciences insiders own 3.2% of the company, worth about US$13m. 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 Does This Data Suggest About MBX Biosciences Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in MBX Biosciences and their transactions don't cause us concern. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 4 warning signs for MBX Biosciences (of which 2 shouldn't be ignored!) you should know about.

But note: MBX Biosciences 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 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.