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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Adamis Pharmaceuticals Corporation (NASDAQ:ADMP).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Adamis Pharmaceuticals Insider Transactions Over The Last Year
Chairman & Consultant Richard Williams made the biggest insider purchase in the last 12 months. That single transaction was for US$79k worth of shares at a price of US$1.57 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.32). 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.
Over the last year, we can see that insiders have bought 62750 shares worth US$99k. On the other hand they divested 53329 shares, for US$122k. Over the last year we saw more insider selling of Adamis Pharmaceuticals shares, than buying. You can see the insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Adamis Pharmaceuticals Have Bought Stock Recently
It's good to see that Adamis Pharmaceuticals insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$99k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership of Adamis Pharmaceuticals
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Adamis Pharmaceuticals insiders own about US$4.4m worth of shares (which is 7.0% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Adamis Pharmaceuticals Insiders?
It is good to see recent purchasing. However, the longer term transactions are not so encouraging. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
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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.