Having purchased US$1.3m worth of Marker Therapeutics, Inc. (NASDAQ:MRKR) stock, the recent 10% pullback is not what insiders may have expected

By
Simply Wall St
Published
January 10, 2022
NasdaqGM:MRKR
Source: Shutterstock

The recent price decline of 10% in Marker Therapeutics, Inc.'s (NASDAQ:MRKR) stock may have disappointed insiders who bought US$1.3m worth of shares at an average price of US$1.76 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$619k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Marker Therapeutics

The Last 12 Months Of Insider Transactions At Marker Therapeutics

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Juan Vera bought US$1m worth of shares at a price of US$1.75 per share. That means that an insider was happy to buy shares at above the current price of US$0.85. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Marker Therapeutics insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGM:MRKR Insider Trading Volume January 10th 2022

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 15% of Marker Therapeutics shares, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Marker Therapeutics Tell Us?

It doesn't really mean much that no insider has traded Marker Therapeutics shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Marker Therapeutics insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Marker Therapeutics. Be aware that Marker Therapeutics is showing 6 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

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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