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Investors who take an interest in Mustang Bio, Inc. (NASDAQ:MBIO) should definitely note that the President, Manuel Litchman, recently paid US$2.91 per share to buy US$251k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 9.9%.
The Last 12 Months Of Insider Transactions At Mustang Bio
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Lindsay Rosenwald for US$532k worth of shares, at about US$2.66 per share. Even though the purchase was made at a significantly lower price than the recent price (US$2.98), we still think insider buying is a positive. 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.
In the last twelve months insiders purchased 551.77k shares for US$1.6m. But insiders sold 20.72k shares worth US$66k. In the last twelve months there was more buying than selling by Mustang Bio insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$4.8m worth of Mustang Bio stock, about 1.8% of the company. We prefer to see high levels of insider ownership.
So What Do The Mustang Bio Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us 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. Case in point: We've spotted 3 warning signs for Mustang Bio you should be aware of, and 1 of them is a bit concerning.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
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