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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in ADMA Biologics, Inc.'s (NASDAQ:ADMA) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
ADMA Biologics Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Adam Grossman bought US$350k worth of shares at a price of US$1.00 per share. Even though the purchase was made at a significantly lower price than the recent price (US$1.65), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
ADMA Biologics insiders may have bought shares in the last year, but they didn't sell any. 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!
ADMA Biologics 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 ADMA Biologics
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$4.3m worth of ADMA Biologics stock, about 1.3% of the company. We consider this fairly low insider ownership.
So What Do The ADMA Biologics Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more ADMA Biologics stock. 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 ADMA Biologics has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
Of course ADMA Biologics 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, 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.