Journey Medical Insiders Up US$187k On US$520.8k Investment
Journey Medical Corporation (NASDAQ:DERM) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 16% decline in the stock price. After accounting for the recent loss, the US$520.8k worth of shares they purchased is now worth US$708.0k, suggesting a good return on their investment.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Journey Medical
Journey Medical Insider Transactions Over The Last Year
The Executive Chairman Lindsay Rosenwald made the biggest insider purchase in the last 12 months. That single transaction was for US$223k worth of shares at a price of US$2.23 each. We do like to see buying, but this purchase was made at well below the current price of US$3.47. 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.
In the last twelve months insiders purchased 204.04k shares for US$521k. But they sold 75.91k shares for US$128k. In total, Journey Medical insiders bought more than they sold over the last year. The average buy price was around US$2.55. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Journey Medical is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Journey Medical Insiders Buying Or Selling?
We have seen a bit of insider selling at Journey Medical, over the last three months. Interim CFO & Corporate Controller Joseph Benesch only netted US$9.2k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.
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. From our data, it seems that Journey Medical insiders own 12% of the company, worth about US$7.7m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Journey Medical Insider Transactions Indicate?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Journey Medical insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Journey Medical has 4 warning signs and it would be unwise to ignore these.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
