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Non-Executive Director Lindsay Rosenwald Just Bought 100% More Shares In Mustang Bio, Inc. (NASDAQ:MBIO)

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Simply Wall St
·3 min read
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Potential Mustang Bio, Inc. (NASDAQ:MBIO) shareholders may wish to note that the Non-Executive Director, Lindsay Rosenwald, recently bought US$266k worth of stock, paying US$2.66 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 100%, potentially signalling some real optimism.

Check out our latest analysis for Mustang Bio

Mustang Bio Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President Manuel Litchman bought US$533k worth of shares at a price of US$3.13 per share. That means that an insider was happy to buy shares at above the current price of US$3.05. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

Mustang Bio insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

Mustang Bio 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.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Mustang Bio insiders own 2.3% of the company, worth about US$4.5m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Mustang Bio Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Mustang Bio insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mustang Bio. For example, Mustang Bio has 4 warning signs (and 2 which are concerning) we think you should know about.

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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.