Insiders might want to re-evaluate their US$1.2m stock purchase as Applied Molecular Transport Inc. (NASDAQ:AMTI) drops to US$112m

·3 min read

The recent 21% drop in Applied Molecular Transport Inc.'s (NASDAQ:AMTI) stock could come as a blow to insiders who purchased US$1.2m worth of stock at an average buy price of US$5.59 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$601k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Applied Molecular Transport

Applied Molecular Transport Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Aaron VanDevender bought US$318k worth of shares at a price of US$6.51 per share. That means that even when the share price was higher than US$2.90 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$1.2m for 207.41k shares. But they sold 18.47k shares for US$56k. In the last twelve months there was more buying than selling by Applied Molecular Transport insiders. Their average price was about US$5.59. These transactions suggest that insiders have considered the current price attractive. 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!


There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Applied Molecular Transport Insiders Bought Stock Recently

There has been significantly more insider buying, than selling, at Applied Molecular Transport, over the last three months. Insiders spent US$516k on shares. On the other hand, insiders netted US$56k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Applied Molecular Transport insiders own about US$27m worth of shares. That equates to 24% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Applied Molecular Transport Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Applied Molecular Transport insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Applied Molecular Transport. To that end, you should learn about the 4 warning signs we've spotted with Applied Molecular Transport (including 2 which are significant).

Of course Applied Molecular Transport 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, but not derivative transactions.

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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.

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