Stock Analysis

Insiders of MannKind Corporation (NASDAQ:MNKD) are up 48% on their US$750k purchase after MannKind Corporation (NASDAQ:MNKD) rose 6.9% last week

  •  Updated
Source: Shutterstock

Insiders who bought MannKind Corporation (NASDAQ:MNKD) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$66m as a result of the stock's 6.9% gain over the same period. In other words, the original US$750k purchase is now worth US$1.1m.

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 MannKind

The Last 12 Months Of Insider Transactions At MannKind

The Independent Director Jennifer Grancio made the biggest insider purchase in the last 12 months. That single transaction was for US$300k worth of shares at a price of US$2.71 each. We do like to see buying, but this purchase was made at well below the current price of US$4.05. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While MannKind insiders bought shares during the last year, they didn't sell. 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!

NasdaqGM:MNKD Insider Trading Volume July 6th 2022

MannKind is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does MannKind Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that MannKind insiders own 1.4% of the company, worth about US$14m. 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 Do The MannKind Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in MannKind and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MannKind. When we did our research, we found 2 warning signs for MannKind (1 can't be ignored!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether MannKind is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis