Possible Turnaround For Mobia Medical Insiders, Still Down US$505k
Insiders who purchased US$4.11m worth of Mobia Medical, Inc. (NASDAQ:MOBI) shares over the past year recouped some of their losses after price gained 22% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$505k.
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 Mobia Medical
Over the last year, we can see that the biggest insider purchase was by Independent Director Cynthia Lucchese for US$1.9m worth of shares, at about US$15.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$12.26). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Mobia Medical insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Mobia Medical
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Mobia Medical Insiders Bought Stock Recently
Over the last quarter, Mobia Medical insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$1.0m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership Of Mobia Medical
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.5% of Mobia Medical shares, worth about US$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Mobia Medical Tell Us?
It's certainly positive to see the recent insider purchases. 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. Given that insiders also own a fair bit of Mobia Medical we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Mobia Medical and we suggest you have a look.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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