We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Matinas BioPharma Holdings, Inc. (NYSEMKT:MTNB).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
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Matinas BioPharma Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Vice Chairman of the Board Patrick LePore for US$95k worth of shares, at about US$0.95 per share. So it's clear an insider wanted to buy, at around the current price, which is US$1.00. 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.
Over the last year, we can see that insiders have bought 125k shares worth US$119k. Matinas BioPharma Holdings may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by 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!
Matinas BioPharma Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Matinas BioPharma Holdings Have Bought Stock Recently
Over the last quarter, Matinas BioPharma Holdings insiders have spent a meaningful amount on shares. In total, insiders bought US$119k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Matinas BioPharma Holdings 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. It appears that Matinas BioPharma Holdings insiders own 9.7% of the company, worth about US$14m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Matinas BioPharma Holdings Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Insiders likely see value in Matinas BioPharma Holdings shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Matinas BioPharma Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.