MacroGenics Insider Confidence Rewarded, Stock Hits US$321m Market Cap \
MacroGenics, Inc. (NASDAQ:MGNX) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a US$36m rise in the company's market capitalisation. As a result, the stock they originally bought for US$99k is now worth US$210k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for MacroGenics
The Last 12 Months Of Insider Transactions At MacroGenics
Over the last year, we can see that the biggest insider purchase was by Senior VP James Karrels for US$99k worth of shares, at about US$2.47 per share. We do like to see buying, but this purchase was made at well below the current price of US$5.25. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of MacroGenics
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that MacroGenics insiders own about US$8.9m worth of shares (which is 2.8% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At MacroGenics Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more MacroGenics stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for MacroGenics (1 doesn't sit too well with us) you should be aware of.
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.
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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.
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