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From what we can see, insiders were net buyers in Mustang Bio, Inc.'s (NASDAQ:MBIO ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Mustang Bio
Mustang Bio Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Manuel Litchman for US$251k worth of shares, at about US$2.91 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.62). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Manuel Litchman.
Manuel Litchman purchased 151.21k shares over the year. The average price per share was US$2.62. 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!
Mustang Bio 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
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. Based on our data, Mustang Bio insiders have about 2.0% of the stock, worth approximately US$1.2m. We prefer to see high levels of insider ownership.
So What Do The Mustang Bio Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Mustang Bio insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Mustang Bio is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...