Independent Director Vikas Goyal Just Bought A Handful Of Shares In Morphic Holding, Inc. (NASDAQ:MORF)

Even if it's not a huge purchase, we think it was good to see that Vikas Goyal, the Independent Director of Morphic Holding, Inc. (NASDAQ:MORF) recently shelled out US$70k to buy stock, at US$70.00 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Morphic Holding

The Last 12 Months Of Insider Transactions At Morphic Holding

In the last twelve months, the biggest single sale by an insider was when the Chief Scientific Officer, Bruce Rogers, sold US$583k worth of shares at a price of US$24.19 per share. That means that an insider was selling shares at slightly below the current price (US$62.94). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 14% of Bruce Rogers's holding.

Over the last year we saw more insider selling of Morphic Holding shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Morphic Holding better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Morphic Holding

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Morphic Holding insiders own 16% of the company, currently worth about US$372m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Morphic Holding Insider Transactions Indicate?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Morphic Holding insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for Morphic Holding (1 doesn't sit too well with us) you should be aware of.

But note: Morphic Holding 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, but not derivative transactions.

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