Insider Buying: The Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) Chairman of the Board Just Bought 46% More Shares
Those following along with Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) will no doubt be intrigued by the recent purchase of shares by Paul Manning, Chairman of the Board of the company, who spent a stonking US$10.0m on stock at an average price of US$2.10. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 46%.
View our latest analysis for Verrica Pharmaceuticals
Verrica Pharmaceuticals Insider Transactions Over The Last Year
In fact, the recent purchase by Paul Manning was the biggest purchase of Verrica Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (US$2.73), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Verrica Pharmaceuticals insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Verrica Pharmaceuticals
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. Verrica Pharmaceuticals insiders own about US$31m worth of shares. That equates to 29% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Verrica Pharmaceuticals Insiders?
The recent insider purchases are heartening. 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. Insiders likely see value in Verrica Pharmaceuticals shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Verrica Pharmaceuticals. Case in point: We've spotted 5 warning signs for Verrica Pharmaceuticals you should be aware of, and 2 of these are concerning.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
