As MannKind Corporation (NASDAQ:MNKD) gains 6.3%, insiders who bought last year may be wishing they had bet higher
MannKind Corporation (NASDAQ:MNKD) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 6.3%, resulting in a US$84m rise in the company's market capitalisation. As a result, their original purchase of US$483k worth of stock is now worth US$967k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for MannKind
The Last 12 Months Of Insider Transactions At MannKind
The Independent Director Jennifer Grancio made the biggest insider purchase in the last 12 months. That single transaction was for US$300k worth of shares at a price of US$2.71 each. We do like to see buying, but this purchase was made at well below the current price of US$5.42. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 178.38k shares worth US$483k. But they sold 4.62k shares for US$18k. Overall, MannKind insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Of MannKind
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that MannKind insiders own 1.4% of the company, worth about US$20m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The MannKind Insider Transactions Indicate?
The fact that there have been no MannKind insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in MannKind and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for MannKind you should be aware of, and 1 of them is concerning.
Of course MannKind may not be the best stock to buy. So you may wish to see this free collection of high quality 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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