Insider Buying: The Greenwich LifeSciences, Inc. (NASDAQ:GLSI) CEO, CFO & Director Just Bought US$61k Worth Of Shares
Even if it's not a huge purchase, we think it was good to see that Snehal Patel, the CEO, CFO & Director of Greenwich LifeSciences, Inc. (NASDAQ:GLSI) recently shelled out US$61k to buy stock, at US$15.19 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for Greenwich LifeSciences
Greenwich LifeSciences Insider Transactions Over The Last Year
In fact, the recent purchase by CEO, CFO & Director Snehal Patel was not their only acquisition of Greenwich LifeSciences shares this year. They previously made an even bigger purchase of US$265k worth of shares at a price of US$9.13 per share. Even though the purchase was made at a significantly lower price than the recent price (US$14.06), we still think insider buying is a positive. 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.
While Greenwich LifeSciences insiders bought shares during the last year, they didn't sell. Their average price was about US$10.98. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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.
Does Greenwich LifeSciences 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. Insiders own 39% of Greenwich LifeSciences shares, worth about US$70m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Greenwich LifeSciences Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Greenwich LifeSciences we think they are probably pretty confident of 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. To that end, you should learn about the 3 warning signs we've spotted with Greenwich LifeSciences (including 2 which are potentially serious).
But note: Greenwich LifeSciences may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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