Yahoo Finance Bullish MicroStrategy Incorporated (NASDAQ:MSTR) insiders were rewarded last week as their US$1.5m investment inflated to US$2.8m
MicroStrategy Incorporated (NASDAQ:MSTR) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a US$385m rise in the company's market capitalisation. As a result, the stock they originally bought for US$1.5m is now worth US$2.8m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for MicroStrategy
The Last 12 Months Of Insider Transactions At MicroStrategy
In the last twelve months, the biggest single purchase by an insider was when Independent Director Carl Rickertsen bought US$608k worth of shares at a price of US$152 per share. We do like to see buying, but this purchase was made at well below the current price of US$332. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While MicroStrategy insiders bought shares during the last year, they didn't sell. They paid about US$178 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
MicroStrategy 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.
Does MicroStrategy Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. MicroStrategy insiders own 34% of the company, currently worth about US$1.3b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About MicroStrategy Insiders?
It doesn't really mean much that no insider has traded MicroStrategy shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like MicroStrategy insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MicroStrategy. For example - MicroStrategy has 5 warning signs we think you should be aware of.
But note: MicroStrategy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, 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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