While it's been a great week for MIRA Pharmaceuticals, Inc. (NASDAQ:MIRA) shareholders after stock gained 577%, company insiders might have missed out on those gains after selling stock earlier this year. The value of their investment would have been higher had they waited to sell their stock.

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.

The Last 12 Months Of Insider Transactions At MIRA Pharmaceuticals

The insider, Brian McNulty, made the biggest insider sale in the last 12 months. That single transaction was for US$313k worth of shares at a price of US$5.07 each. So we know that an insider sold shares at around the present share price of US$5.01. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Brian McNulty was the only individual insider to sell shares in the last twelve months.

Brian McNulty ditched 119.05k shares over the year. The average price per share was US$3.05. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Have MIRA Pharmaceuticals Insiders Traded Recently?

We saw some MIRA Pharmaceuticals insider buying shares in the last three months. CEO & Chairman Erez Aminov purchased US$8.2k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of MIRA Pharmaceuticals

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that MIRA Pharmaceuticals insiders own 20% of the company, worth about US$2.0m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At MIRA Pharmaceuticals Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. We don't take much encouragement from the transactions by MIRA Pharmaceuticals insiders. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 6 warning signs for MIRA Pharmaceuticals (4 make us uncomfortable!) that we believe deserve your full attention.

Of course MIRA Pharmaceuticals 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 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.

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