Yahoo Finance Insiders Who Purchased CA$1.03m Of Eupraxia Pharmaceuticals Stock May Not Have Expected 31% Tumble
The recent price decline of 31% in Eupraxia Pharmaceuticals Inc.'s (TSE:EPRX) stock may have disappointed insiders who bought CA$1.03m worth of shares at an average price of CA$6.60 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only CA$634.6k.
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 Eupraxia Pharmaceuticals
The Last 12 Months Of Insider Transactions At Eupraxia Pharmaceuticals
In the last twelve months, the biggest single purchase by an insider was when Independent Director John Montalbano bought CA$525k worth of shares at a price of CA$7.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$4.05). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.
In the last twelve months Eupraxia Pharmaceuticals insiders were buying shares, but not selling. 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!
Eupraxia Pharmaceuticals 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 Eupraxia Pharmaceuticals
For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 8.4% of Eupraxia Pharmaceuticals shares, worth about CA$11m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Eupraxia Pharmaceuticals Insider Transactions Indicate?
The fact that there have been no Eupraxia Pharmaceuticals insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Eupraxia Pharmaceuticals and their transactions don't cause us concern. 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. While conducting our analysis, we found that Eupraxia Pharmaceuticals has 3 warning signs and it would be unwise to ignore them.
Of course Eupraxia 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.
