Yahoo Finance Favourable Signals For NeuroOne Medical Technologies: Numerous Insiders Acquired Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of NeuroOne Medical Technologies Corporation (NASDAQ:NMTC), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for NeuroOne Medical Technologies
The Last 12 Months Of Insider Transactions At NeuroOne Medical Technologies
The Chief Operating Officer Christopher Volker made the biggest insider purchase in the last 12 months. That single transaction was for US$105k worth of shares at a price of US$1.40 each. That means that even when the share price was higher than US$1.17 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 125.90k shares worth US$155k. But insiders sold 50.00k shares worth US$72k. Overall, NeuroOne Medical Technologies insiders were net buyers during the last year. The average buy price was around US$1.23. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NeuroOne Medical Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of NeuroOne Medical Technologies
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 10.0% of NeuroOne Medical Technologies shares, worth about US$3.0m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About NeuroOne Medical Technologies Insiders?
It doesn't really mean much that no insider has traded NeuroOne Medical Technologies shares in the last quarter. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think NeuroOne Medical Technologies insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that NeuroOne Medical Technologies has 6 warning signs (3 are potentially serious!) that deserve your attention before going any further with your analysis.
But note: NeuroOne Medical Technologies 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 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.
