Insiders Who Sold MIRA Pharmaceuticals Missed Out On 19% Stock Increase

While it’s been a great week for MIRA Pharmaceuticals, Inc. (NASDAQ:MIRA) shareholders after stock gained 19%, not so much for insiders who sold stock over the past year. The return on their investment would have been much higher had they held on to their stock.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for MIRA Pharmaceuticals

MIRA Pharmaceuticals Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Brian McNulty, sold US$313k worth of shares at a price of US$5.07 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$0.85. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Brian McNulty.

Brian McNulty divested 119.05k shares over the last 12 months at an average price of US$3.05. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of MIRA Pharmaceuticals

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. MIRA Pharmaceuticals insiders own about US$1.9m worth of shares. That equates to 20% of the company. 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 MIRA Pharmaceuticals Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of MIRA Pharmaceuticals insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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. Be aware that MIRA Pharmaceuticals is showing 5 warning signs in our investment analysis, and 4 of those make us uncomfortable...

Of course MIRA Pharmaceuticals 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.