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James Karrels Is The Senior VP of MacroGenics, Inc. (NASDAQ:MGNX) And They Just Picked Up 26% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the MacroGenics, Inc. (NASDAQ:MGNX) Senior VP, James Karrels, recently bought US$99k worth of stock, for US$2.47 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 26%.

Check out our latest analysis for MacroGenics

The Last 12 Months Of Insider Transactions At MacroGenics

In fact, the recent purchase by James Karrels was the biggest purchase of MacroGenics shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$2.30. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. James Karrels was the only individual insider to buy during the last year.

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You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

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 MacroGenics Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, MacroGenics insiders have about 2.7% of the stock, worth approximately US$3.8m. We prefer to see high levels of insider ownership.

So What Do The MacroGenics Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that MacroGenics 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 MacroGenics. At Simply Wall St, we've found that MacroGenics has 4 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

Of course MacroGenics 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.

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.