When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Immunic, Inc.’s (NASDAQ:IMUX) instance, it’s good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Immunic
The Independent Director Jorg Neermann made the biggest insider purchase in the last 12 months. That single transaction was for US$103k worth of shares at a price of US$1.26 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.54. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
In the last twelve months Immunic insiders were buying shares, but not selling. They paid about US$1.85 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Immunic is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Immunic Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Immunic. Not only was there no selling that we can see, but they collectively bought US$146k worth of shares. That shows some optimism about the company’s future.
Does Immunic Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Immunic insiders own 2.3% of the company, worth about US$1.6m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Immunic Insiders?
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. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Immunic 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. Be aware that Immunic is showing 5 warning signs in our investment analysis, and 3 of those are a bit concerning…
Of course Immunic 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.
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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.
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