Investors who take an interest in Applied Molecular Transport Inc. (NASDAQ:AMTI) should definitely note that insider Chad Boeding recently paid US$22.45 per share to buy US$250k worth of the stock. Although the purchase only increased their holding by 5.1%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Applied Molecular Transport
The Independent Chairman, Helen Kim, made the biggest insider sale in the last 12 months. That single transaction was for US$8.7m worth of shares at a price of US$46.31 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$18.38. So it may not tell us anything about how insiders feel about the current share price. Helen Kim was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 36.14k shares for US$1.3m. But insiders sold 200.00k shares worth US$8.7m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!NasdaqGS:AMTI Insider Trading Volume November 24th 2021
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Does Applied Molecular Transport Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Applied Molecular Transport insiders own about US$188m worth of shares (which is 27% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Applied Molecular Transport Insiders?
It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Applied Molecular Transport is showing 5 warning signs in our investment analysis, and 2 of those are a bit unpleasant...
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, but not derivative transactions.
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.
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