Insider Buying: Stuart Grant Just Spent US$1.9m On Eyenovia, Inc. (NASDAQ:EYEN) Shares
Eyenovia, Inc. (NASDAQ:EYEN) shareholders (or potential shareholders) will be happy to see that insider Stuart Grant recently bought a whopping US$1.9m worth of stock, at a price of US$2.06. Not only is that a big swing, but it increased their holding size by 38%, which is definitely great to see.
See our latest analysis for Eyenovia
The Last 12 Months Of Insider Transactions At Eyenovia
In fact, the recent purchase by Stuart Grant was the biggest purchase of Eyenovia shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$2.34 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Eyenovia share holders is that insiders were buying at near the current price.
In the last twelve months Eyenovia insiders were buying shares, but not selling. They paid about US$2.31 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Eyenovia
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Eyenovia insiders own 26% of the company, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Eyenovia 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. 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 Eyenovia 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 Eyenovia. To help with this, we've discovered 5 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in Eyenovia.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
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