NeuroOne Medical Technologies Corporation (NASDAQ:NMTC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a US$4.4m addition to the company’s market value. Put another way, the original US$670.4k acquisition is now worth US$829.9k.
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.
NeuroOne Medical Technologies Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Business Officer David Wambeke bought US$670k worth of shares at a price of US$0.67 per share. We do like to see buying, but this purchase was made at well below the current price of US$0.83. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for NeuroOne Medical Technologies
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
NeuroOne Medical Technologies Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at NeuroOne Medical Technologies, over the last three months. In total, Chief Business Officer David Wambeke bought US$670k worth of shares in that time. But we did see Co-Founder Mark Christianson sell shares worth US$23k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
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. Our data indicates that NeuroOne Medical Technologies insiders own about US$3.2m worth of shares (which is 8.0% of the company). Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Does This Data Suggest About NeuroOne Medical Technologies Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives 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 NeuroOne Medical Technologies insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Every company has risks, and we’ve spotted 2 warning signs for NeuroOne Medical Technologies 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 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.
