Bullish DiaMedica Therapeutics Insiders Loaded Up On US$5.2m Of Stock \
Multiple insiders secured a larger position in DiaMedica Therapeutics Inc. (NASDAQ:DMAC) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for DiaMedica Therapeutics
DiaMedica Therapeutics Insider Transactions Over The Last Year
The insider Thomas von Koch made the biggest insider purchase in the last 12 months. That single transaction was for US$3.5m worth of shares at a price of US$1.24 each. Even though the purchase was made at a significantly lower price than the recent price (US$1.62), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$5.2m for 4.04m shares. But insiders sold 2.86m shares worth US$3.5m. In total, DiaMedica Therapeutics insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
DiaMedica Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
DiaMedica Therapeutics Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at DiaMedica Therapeutics. We can see that Chief Business Officer David Wambeke paid US$750k for shares in the company. No-one sold. That shows some optimism about the company's future.
Does DiaMedica Therapeutics Boast High 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. It appears that DiaMedica Therapeutics insiders own 39% of the company, worth about US$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The DiaMedica Therapeutics Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of DiaMedica Therapeutics we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DiaMedica Therapeutics. Every company has risks, and we've spotted 4 warning signs for DiaMedica Therapeutics (of which 2 shouldn't be ignored!) you should know about.
Of course DiaMedica Therapeutics 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.
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