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Minim, Inc. (NASDAQ:MINM) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 15% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of US$1.12m is now worth US$2.97m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Minim
The Last 12 Months Of Insider Transactions At Minim
The Executive Chairman & CEO Jeremy Hitchcock made the biggest insider purchase in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$1.51 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.00. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Minim 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.
Insider Ownership Of Minim
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Minim insiders own 60% of the company, currently worth about US$6.3m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Minim Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Minim. Looks promising! 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 4 warning signs for Minim you should be aware of, and 2 of these are significant.
Of course Minim may not be the best stock to buy. So you may wish to see this free collection of high quality companies.