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Positive Signs As Multiple Insiders Buy Applied Molecular Transport Stock \

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Applied Molecular Transport Inc.'s (NASDAQ:AMTI) instance, it's good news for shareholders.

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 Applied Molecular Transport

The Last 12 Months Of Insider Transactions At Applied Molecular Transport

Over the last year, we can see that the biggest insider purchase was by Independent Director David Lamond for US$211k worth of shares, at about US$3.26 per share. That means that even when the share price was higher than US$0.28 (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. 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.

Happily, we note that in the last year insiders paid US$360k for 216.50k shares. On the other hand they divested 41.14k shares, for US$79k. In the last twelve months there was more buying than selling by Applied Molecular Transport insiders. They paid about US$1.67 on average. These transactions suggest that insiders have considered the current price attractive. 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!

insider-trading-volume
insider-trading-volume

Applied Molecular Transport 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.

Have Applied Molecular Transport Insiders Traded Recently?

In the last quarter insiders sold US$2.1k worth of equity. That's not a lot. Ultimately the overall selling isn't enough to tell us much.

Does Applied Molecular Transport Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Applied Molecular Transport insiders own 24% of the company, worth about US$2.7m. 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 Does This Data Suggest About Applied Molecular Transport Insiders?

While there has not been any insider buying in the last three months, there has been selling. However, the sales are not big enough to concern us at all. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Applied Molecular Transport insiders are doubting the company, and they do own shares. 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 5 warning signs for Applied Molecular Transport you should be aware of, and 3 of them are a bit unpleasant.

But note: Applied Molecular Transport may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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

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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