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Even if it's not a huge purchase, we think it was good to see that Ulrik Nielsen, the Co-Founder & Independent Director of Merrimack Pharmaceuticals, Inc. (NASDAQ:MACK) recently shelled out US$61k to buy stock, at US$4.24 per share. While that isn't the hugest buy, it actually boosted their shareholding by 63%, which is good to see.
Merrimack Pharmaceuticals Insider Transactions Over The Last Year
Notably, that recent purchase by Ulrik Nielsen is the biggest insider purchase of Merrimack Pharmaceuticals shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$4.97), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 82.12k shares for US$443k. But they sold 1.00k shares for US$3.8k. In total, Merrimack Pharmaceuticals insiders bought more than they sold over the last year. They paid about US$5.39 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Merrimack Pharmaceuticals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Merrimack Pharmaceuticals Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at Merrimack Pharmaceuticals, though insiders do hold about US$377k worth of shares. We might be missing something but that seems like very low insider ownership.
What Might The Insider Transactions At Merrimack Pharmaceuticals Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Merrimack Pharmaceuticals insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Merrimack Pharmaceuticals. At Simply Wall St, we've found that Merrimack Pharmaceuticals has 2 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
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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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.