Yahoo Finance Bullish insiders at Greenwich LifeSciences, Inc. (NASDAQ:GLSI) loaded up on US$1.4m of stock earlier this year
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Greenwich LifeSciences, Inc.'s (NASDAQ:GLSI) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Greenwich LifeSciences
The Last 12 Months Of Insider Transactions At Greenwich LifeSciences
In the last twelve months, the biggest single purchase by an insider was when CEO, CFO & Director Snehal Patel bought US$265k worth of shares at a price of US$9.13 per share. That implies that an insider found the current price of US$9.47 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Greenwich LifeSciences share holders is that insiders were buying at near the current price.
While Greenwich LifeSciences insiders bought shares during the last year, they didn't sell. Their average price was about US$11.51. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Greenwich LifeSciences is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Greenwich LifeSciences
For a common shareholder, it is worth checking how many shares are held by company 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. Greenwich LifeSciences insiders own 79% of the company, currently worth about US$96m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Greenwich LifeSciences Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Greenwich LifeSciences insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in Greenwich LifeSciences.
Of course Greenwich LifeSciences 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
