We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Nymox Pharmaceutical Corporation (NASDAQ:NYMX).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
The Last 12 Months Of Insider Transactions At Nymox Pharmaceutical
The Founder, Paul Averback, made the biggest insider sale in the last 12 months. That single transaction was for US$4.4m worth of shares at a price of US$2.50 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.69). So it may not shed much light on insider confidence at current levels. Paul Averback was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 364k shares for US$609k. But they sold 1.8m for US$4.4m. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Nymox Pharmaceutical Insiders Bought Stock Recently
It's good to see that Nymox Pharmaceutical insiders have made notable investments in the company's shares. James Robinson spent US$318k on stock, and there wasn't any selling. This makes one think the business has some good points.
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. Nymox Pharmaceutical insiders own 45% of the company, currently worth about US$51m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Nymox Pharmaceutical Tell Us?
The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by an insider, suggests they are well aligned and optimistic. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
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.
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