Despite the fact that MiMedx Group, Inc. (NASDAQ:MDXG) stock rose 17% last week, insiders who sold US$659k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$8.02, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At MiMedx Group
The insider, Ricci Whitlow, made the biggest insider sale in the last 12 months. That single transaction was for US$250k worth of shares at a price of US$8.06 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$6.85). So it may not tell us anything about how insiders feel about the current share price.
All up, insiders sold more shares in MiMedx Group than they bought, over the last year. 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!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of MiMedx Group
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. Insiders own 1.4% of MiMedx Group shares, worth about US$14m. 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 MiMedx Group Insiders?
The fact that there have been no MiMedx Group insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by MiMedx Group insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MiMedx Group. For instance, we've identified 3 warning signs for MiMedx Group (2 shouldn't be ignored) you should be aware of.
Of course MiMedx Group 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.
