Christopher Peetz Is The President of Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) And They Just Picked Up 2.5% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) President, Christopher Peetz, recently bought US$93k worth of stock, for US$18.70 per share. Although the purchase is not a big one, increasing their shareholding by only 2.5%, it can be interpreted as a good sign.

See our latest analysis for Mirum Pharmaceuticals

The Last 12 Months Of Insider Transactions At Mirum Pharmaceuticals

In fact, the recent purchase by Christopher Peetz was the biggest purchase of Mirum Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$19.54 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Mirum Pharmaceuticals insiders were buying shares, but not selling. They paid about US$15.79 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. We usually like to see fairly high levels of insider ownership. Mirum Pharmaceuticals insiders own about US$15m worth of shares. That equates to 2.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Mirum Pharmaceuticals Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Mirum Pharmaceuticals shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mirum Pharmaceuticals. In terms of investment risks, we've identified 2 warning signs with Mirum Pharmaceuticals and understanding these should be part of your investment process.

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.

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