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Those following along with Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) will no doubt be intrigued by the recent purchase of shares by Leonard Mazur, Executive Chairman & Secretary of the company, who spent a stonking US$2.0m on stock at an average price of US$0.90. Not only is that a big swing, but it increased their holding size by 28%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Citius Pharmaceuticals
Notably, that recent purchase by Executive Chairman & Secretary Leonard Mazur was not the only time they bought Citius Pharmaceuticals shares this year. Earlier in the year, they paid US$0.90 per share in a US$2.0m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.72). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
While Citius Pharmaceuticals insiders bought shares last year, they didn't sell. They paid about US$1.10 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by 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!
Citius Pharmaceuticals 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.
Does Citius Pharmaceuticals Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Citius Pharmaceuticals insiders own about US$7.3m worth of shares. That equates to 34% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Citius Pharmaceuticals Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Given that insiders also own a fair bit of Citius Pharmaceuticals we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Citius Pharmaceuticals, you should check out this free report on analyst forecasts for the company.
Of course Citius 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.