One MaxCyte Insider Raised Stake By 400% In Previous Year
From what we can see, insiders were net buyers in MaxCyte, Inc.'s (LON:MXCT ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
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 MaxCyte
MaxCyte Insider Transactions Over The Last Year
The Independent Non-Executive Chairman of the Board Richard Douglas made the biggest insider purchase in the last 12 months. That single transaction was for UK£280k worth of shares at a price of UK£3.51 each. That means that even when the share price was higher than UK£2.50 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Richard Douglas was the only individual insider to buy shares in the last twelve months.
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!
MaxCyte is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of MaxCyte
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own UK£3.4m worth of MaxCyte stock, about 1.3% of the company. We consider this fairly low insider ownership.
So What Does This Data Suggest About MaxCyte Insiders?
The fact that there have been no MaxCyte insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if MaxCyte insiders bought more shares in the company. 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. At Simply Wall St, we've found that MaxCyte has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
Of course MaxCyte 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
