Microba Life Sciences Insiders Forfeit On 21% Gains After Selling Stock

Despite the fact that Microba Life Sciences Limited (ASX:MAP) stock rose 21% last week, insiders who sold AU$213k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of AU$0.085, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Microba Life Sciences

Over the last year, we can see that the biggest insider sale was by the insider, Richard Bund, for AU$157k worth of shares, at about AU$0.086 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of AU$0.058. So it may not shed much light on insider confidence at current levels. Richard Bund was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 1.45m shares worth AU$73k. But they sold 2.52m shares for AU$213k. Richard Bund divested 2.52m shares over the last 12 months at an average price of AU$0.085. 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!

Check out our latest analysis for Microba Life Sciences

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Insiders At Microba Life Sciences Have Bought Stock Recently

It's good to see that Microba Life Sciences insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$73k worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership Of Microba Life Sciences

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 11% of Microba Life Sciences shares, worth about AU$4.8m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Microba Life Sciences Insider Transactions Indicate?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. Neither the level of insider ownership, nor the transactions over the last twelve months inspire us, but we think the recent buying is positive. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Microba Life Sciences. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Microba Life Sciences.

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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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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.