Yahoo Finance The CFO and Head of Manufacturing & Supply Chain of PLx Pharma Inc. (NASDAQ:PLXP), Rita O'Connor, Just Bought 106% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the PLx Pharma Inc. (NASDAQ:PLXP) CFO and Head of Manufacturing & Supply Chain, Rita O'Connor, recently bought US$50k worth of stock, for US$3.66 per share. Even though that isn't a massive buy, it did increase their holding by 106%, which is arguably a good sign.
See our latest analysis for PLx Pharma
The Last 12 Months Of Insider Transactions At PLx Pharma
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Michael Valentino bought US$100k worth of shares at a price of US$12.51 per share. That means that an insider was happy to buy shares at above the current price of US$4.55. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months PLx Pharma insiders were buying shares, but not selling. The average buy price was around US$6.39. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
PLx Pharma is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does PLx Pharma Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that PLx Pharma insiders own about US$7.8m worth of shares (which is 6.2% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At PLx Pharma Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that PLx Pharma insiders are expecting a bright 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. While conducting our analysis, we found that PLx Pharma has 3 warning signs and it would be unwise to ignore them.
Of course PLx Pharma 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.
