Rezolute Reaches US$75m Market Cap Benefiting Insider Stock Buying
Rezolute, Inc. (NASDAQ:RZLT) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a US$8.7m rise in the company's market capitalisation, translating to a gain of 25% on their initial investment. In other words, the original US$327.1k purchase is now worth US$409.0k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Rezolute
Rezolute Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chief Financial Officer Daron Evans for US$96k worth of shares, at about US$1.93 per share. That means that an insider was happy to buy shares at around the current price of US$2.12. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for Rezolute share holders is that insiders were buying at near the current price.
While Rezolute insiders bought shares during the last year, they didn't sell. Their average price was about US$1.70. We don't deny that it is nice to see insiders buying stock 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Rezolute 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.
Rezolute Insiders Bought Stock Recently
It's good to see that Rezolute insiders have made notable investments in the company's shares. Overall, four insiders shelled out US$318k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Rezolute 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. 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 looking at our data, insiders own US$799k worth of Rezolute stock, about 1.1% of the company. We prefer to see high levels of insider ownership.
So What Do The Rezolute Insider Transactions Indicate?
It is good to see recent purchasing. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Rezolute insiders are reasonably well aligned, and optimistic for the 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. To help with this, we've discovered 5 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Rezolute.
Of course Rezolute 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 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.
