By selling US$1.7m worth of MiMedx Group, Inc. (NASDAQ:MDXG) stock at an average sell price of US$4.17 over the last year, insiders seemed to have made the most of their holdings. After the stock price dropped 14% last week, the company's market value declined by US$57m, but insiders were able to mitigate their losses.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for MiMedx Group

The Last 12 Months Of Insider Transactions At MiMedx Group

Over the last year, we can see that the biggest insider sale was by the insider, Timothy Wright, for US$420k worth of shares, at about US$3.75 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.96. So it may not shed much light on insider confidence at current levels.

In the last year MiMedx Group insiders didn't buy any company stock. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

MiMedx Group Insiders Are Selling The Stock

The last three months saw significant insider selling at MiMedx Group. Specifically, insiders ditched US$302k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does MiMedx Group 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that MiMedx Group insiders own 1.9% of the company, worth about US$6.3m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The MiMedx Group Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MiMedx Group. At Simply Wall St, we found 2 warning signs for MiMedx Group that deserve your attention before buying any shares.

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.

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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.