Positive Signs As Multiple Insiders Buy Relmada Therapeutics Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Relmada Therapeutics, Inc. (NASDAQ:RLMD), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Relmada Therapeutics
The Last 12 Months Of Insider Transactions At Relmada Therapeutics
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Sergio Traversa bought US$116k worth of shares at a price of US$2.10 per share. We do like to see buying, but this purchase was made at well below the current price of US$3.16. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Relmada 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Relmada Therapeutics Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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 Relmada Therapeutics insiders own 8.6% of the company, worth about US$8.2m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Relmada Therapeutics Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. 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 Relmada Therapeutics 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. Be aware that Relmada Therapeutics is showing 5 warning signs in our investment analysis, and 2 of those 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 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.
