Insiders who bought for 113,000 Australian dollars of Pharmaxis SA (ASX:PXS) Over the past year, stocks have recouped some of their losses after the price gained 13% last week. However, the total losses seen by insiders are still A$33,000, but from the time of purchase.
While we don’t think shareholders should simply follow insider trading, we think it makes perfect sense to keep tabs on what insiders are doing.
Discover our latest analysis for Pharmaxis
Pharmaxis insider trading over the past year
Independent Chairman of the Board Malcolm McComas made the biggest insider buy in the past 12 months. This single transaction was for A$113,000 of shares at a price of A$0.11 each. This means that an insider was happy to buy shares above the current price of AU$0.078. It is very possible that they regret the purchase, but it is more likely that they are optimistic about the company. For us, it is very important to consider the price that insiders pay for the shares. It is encouraging to see an insider paid above the current stock price, as it suggests that they have perceived value even at higher levels. Malcolm McComas was the only individual insider to buy in the past year.
You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!
There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. From our data, it appears that Pharmaxis insiders own 6.5% of the company, worth around AU$2.8 million. However, insiders may have an indirect interest through a more complex structure. Overall, this level of property isn’t that impressive, but it’s definitely better than nothing!
So what do Pharmaxis insider trading indicate?
There have been no insider trades in the last three months – that’s not saying much. But insiders have shown more appetite for the stock over the past year. While we’re not worried about insider trading, we’d be more comfortable if they held more Pharmaxis stock. In addition to knowing what insider trading is going on, it is useful to identify the risks that Pharmaxis faces. Every business has risks, and we’ve spotted 5 warning signs for Pharmaxis (2 of which don’t really suit us!) that you should know.
Sure Pharmaxis may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.