Investors who take an interest in CorMedix, Inc. (NYSEMKT:CRMD) should definitely note that the Independent Director, Mehmood Khan, recently paid US$6.58 per share to buy US$112k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 15%.
CorMedix Insider Transactions Over The Last Year
In fact, the recent purchase by Mehmood Khan was the biggest purchase of CorMedix shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$7.75 per share to be enticing. 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. The good news for CorMedix share holders is that insiders were buying at near the current price.
CorMedix insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$7.38. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
CorMedix 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.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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$3.8m worth of CorMedix stock, about 1.9% of the company. We consider this fairly low insider ownership.
What Might The Insider Transactions At CorMedix Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give 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 CorMedix stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for CorMedix.
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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