Insiders who bought stock earlier this year lose -US$12k as VistaGen Therapeutics, Inc. (NASDAQ:VTGN) drops to US$34m
The recent price decline of 15% in VistaGen Therapeutics, Inc.'s (NASDAQ:VTGN) stock may have disappointed insiders who bought US$190k worth of shares at an average price of US$0.17 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$178k.
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.
See our latest analysis for VistaGen Therapeutics
The Last 12 Months Of Insider Transactions At VistaGen Therapeutics
The CEO & Director Shawn Singh made the biggest insider purchase in the last 12 months. That single transaction was for US$103k worth of shares at a price of US$0.17 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.16). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
VistaGen Therapeutics insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and 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!
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).
Insiders At VistaGen Therapeutics Have Bought Stock Recently
It's good to see that VistaGen Therapeutics insiders have made notable investments in the company's shares. In total, insiders bought US$190k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does VistaGen Therapeutics Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data isn't picking up on much insider ownership at VistaGen Therapeutics, though insiders do hold about US$274k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The VistaGen Therapeutics Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that VistaGen Therapeutics insiders are reasonably well aligned, and optimistic for the future. 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. For example, VistaGen Therapeutics has 6 warning signs (and 2 which shouldn't be ignored) we think you should know about.
But note: VistaGen Therapeutics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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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