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Whilst it may not be a huge deal, we thought it was good to see that the Milestone Pharmaceuticals Inc. (NASDAQ:MIST) Chief Commercial Officer, Lorenz Muller, recently bought US$94k worth of stock, for US$3.76 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 23%.
View our latest analysis for Milestone Pharmaceuticals
The Last 12 Months Of Insider Transactions At Milestone Pharmaceuticals
Notably, that recent purchase by Lorenz Muller is the biggest insider purchase of Milestone Pharmaceuticals shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.63). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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.
Milestone Pharmaceuticals insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$4.78. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does Milestone Pharmaceuticals 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. Based on our data, Milestone Pharmaceuticals insiders have about 1.1% of the stock, worth approximately US$1.6m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Milestone Pharmaceuticals Insiders?
It is good to see the recent insider purchase. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Milestone Pharmaceuticals insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Milestone Pharmaceuticals. Be aware that Milestone Pharmaceuticals is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...