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Aaron VanDevender Is The Independent Director of Applied Molecular Transport Inc. (NASDAQ:AMTI) And They Just Picked Up 239% More Shares

Potential Applied Molecular Transport Inc. (NASDAQ:AMTI) shareholders may wish to note that the Independent Director, Aaron VanDevender, recently bought US$150k worth of stock, paying US$1.00 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 239%.

Check out our latest analysis for Applied Molecular Transport

The Last 12 Months Of Insider Transactions At Applied Molecular Transport

In fact, the recent purchase by Independent Director Aaron VanDevender was not their only acquisition of Applied Molecular Transport shares this year. They previously made an even bigger purchase of US$318k worth of shares at a price of US$6.51 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.05). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

Over the last year, we can see that insiders have bought 346.28k shares worth US$1.1m. But they sold 22.89k shares for US$62k. In the last twelve months there was more buying than selling by Applied Molecular Transport insiders. Their average price was about US$3.06. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Applied Molecular Transport is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Applied Molecular Transport

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Applied Molecular Transport insiders own 24% of the company, worth about US$9.8m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Applied Molecular Transport Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Applied Molecular Transport we think they are probably pretty confident of a bright future. While we like knowing 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. For example, Applied Molecular Transport has 6 warning signs (and 3 which are potentially serious) we think you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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