Even if it's not a huge purchase, we think it was good to see that Jason Hsu, the Independent Director of Immix Biopharma, Inc. (NASDAQ:IMMX) recently shelled out US$52k to buy stock, at US$2.23 per share. However, it only increased their shares held by 2.6%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Immix Biopharma
Notably, that recent purchase by Independent Director Jason Hsu was not the only time they bought Immix Biopharma shares this year. They previously made an even bigger purchase of US$267k worth of shares at a price of US$4.88 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.22). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Immix Biopharma insiders bought shares during the last year, they didn't sell. The average buy price was around US$3.03. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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. Immix Biopharma insiders own about US$17m worth of shares. That equates to 28% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Immix Biopharma Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Immix Biopharma we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 6 warning signs (3 can't be ignored!) that you ought to be aware of before buying any shares in Immix Biopharma.
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 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.
