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Potential Processa Pharmaceuticals, Inc. (NASDAQ:PCSA) shareholders may wish to note that the Co-Founder, Patrick Lin, recently bought US$125k worth of stock, paying US$4.00 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 8.5%.
Processa Pharmaceuticals Insider Transactions Over The Last Year
In fact, the recent purchase by Patrick Lin was the biggest purchase of Processa Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$4.08. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Processa Pharmaceuticals insiders decided to buy shares at close to current prices.
Processa Pharmaceuticals 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Processa Pharmaceuticals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Processa Pharmaceuticals Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 23% of Processa Pharmaceuticals shares, worth about US$9.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Processa Pharmaceuticals Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Processa Pharmaceuticals we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Processa Pharmaceuticals has 5 warning signs (3 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
Of course Processa Pharmaceuticals may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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. 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.
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