We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Regulus Therapeutics Inc. (NASDAQ:RGLS).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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 Regulus Therapeutics
Over the last year, we can see that the biggest insider purchase was by Chairman of the Board of Directors Stelios Papadopoulos for US$681k worth of shares, at about US$1.38 per share. That means that even when the share price was higher, an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We generally consider it a positive if insiders have been buying on market, even above the current price.
Over the last year, we can see that insiders have bought 507.10k shares worth US$691k. In the last twelve months there was more buying than selling by Regulus Therapeutics insiders. Their average price was about US$1.36. I’d consider this a positive as it suggests insiders see value at around the current price, which is US$0.95. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Regulus Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Regulus Therapeutics Have Bought Stock Recently
It’s good to see that Regulus Therapeutics insiders have made notable investments in the company’s shares. In total, insiders bought US$691k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Regulus Therapeutics insiders own 9.0% of the company, currently worth about US$823k 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 Regulus Therapeutics Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don’t feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Regulus Therapeutics stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Regulus Therapeutics.
Of course Regulus Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.