Larimar Therapeutics Insiders Placed Bullish Bets Worth US$1.2m
Quite a few insiders have dramatically grown their holdings in Larimar Therapeutics, Inc. (NASDAQ:LRMR) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Larimar Therapeutics
Larimar Therapeutics Insider Transactions Over The Last Year
The Independent Director Thomas Hamilton made the biggest insider purchase in the last 12 months. That single transaction was for US$1m worth of shares at a price of US$3.15 each. Even though the purchase was made at a significantly lower price than the recent price (US$4.17), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Larimar Therapeutics insiders may have bought shares in the last year, but they didn't sell any. 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!
Larimar 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 Larimar Therapeutics Have Bought Stock Recently
There was some insider buying at Larimar Therapeutics over the last quarter. Insiders purchased US$47k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
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. Based on our data, Larimar Therapeutics insiders have about 1.3% of the stock, worth approximately US$2.3m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Larimar Therapeutics Insiders?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Larimar Therapeutics insiders are doubting 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. To that end, you should learn about the 5 warning signs we've spotted with Larimar Therapeutics (including 3 which don't sit too well with us).
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, 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.
