Possible Signal As MiMedx Group Insiders Sell US$659k In Stock

Last week, MiMedx Group, Inc.'s (NASDAQ:MDXG) stock jumped 17%, but insiders who sold US$659k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$8.02, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

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.

See our latest analysis for MiMedx Group

MiMedx Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Ricci Whitlow, for US$250k worth of shares, at about US$8.06 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$6.85. So it may not shed much light on insider confidence at current levels.

In total, MiMedx Group insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of MiMedx Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.4% of MiMedx Group shares, worth about US$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At MiMedx Group Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at MiMedx Group in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that MiMedx Group has 3 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.

Of course MiMedx Group 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.