DiaMedica Therapeutics Insiders Placed Bullish Bets Worth US$20.2m
In the last year, multiple insiders have substantially increased their holdings of DiaMedica Therapeutics Inc. (NASDAQ:DMAC) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for DiaMedica Therapeutics
DiaMedica Therapeutics Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Thomas von Koch bought US$5.0m worth of shares at a price of US$3.40 per share. That means that an insider was happy to buy shares at above the current price of US$2.34. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Thomas von Koch was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 8.12m shares for US$20m. But insiders sold 2.86m shares worth US$3.5m. Overall, DiaMedica Therapeutics insiders were net buyers during the last year. Their average price was about US$2.49. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
DiaMedica Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. DiaMedica Therapeutics insiders own 41% of the company, currently worth about US$36m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The DiaMedica Therapeutics Insider Transactions Indicate?
It doesn't really mean much that no insider has traded DiaMedica Therapeutics shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like DiaMedica Therapeutics insiders think the business has merit. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for DiaMedica Therapeutics (of which 2 make us uncomfortable!) 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 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.
