Insiders rewarded with a US$114k addition on top of their US$676k purchase as DiaMedica Therapeutics Inc. (NASDAQ:DMAC) hits US$41m
DiaMedica Therapeutics Inc. (NASDAQ:DMAC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 16% resulting in a US$5.6m addition to the company’s market value. Put another way, the original US$676k acquisition is now worth US$790k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for DiaMedica Therapeutics
The Last 12 Months Of Insider Transactions At DiaMedica Therapeutics
Over the last year, we can see that the biggest insider purchase was by insider Thomas von Koch for US$400k worth of shares, at about US$1.36 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.54. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Thomas von Koch purchased 512.80k shares over the year. The average price per share was US$1.32. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. DiaMedica Therapeutics insiders own about US$14m 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.
So What Do The DiaMedica Therapeutics Insider Transactions Indicate?
The fact that there have been no DiaMedica Therapeutics insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think DiaMedica Therapeutics insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DiaMedica Therapeutics. Be aware that DiaMedica Therapeutics is showing 4 warning signs in our investment analysis, and 1 of those can't be ignored...
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, 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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