Yahoo Finance A number of insiders bought Seelos Therapeutics, Inc. (NASDAQ:SEEL) stock last year, which is great news for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Seelos Therapeutics, Inc. (NASDAQ:SEEL), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Seelos Therapeutics
Seelos Therapeutics Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder Raj Mehra bought US$57k worth of shares at a price of US$0.85 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.64). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Seelos Therapeutics insiders were buying shares, but not selling. The average buy price was around US$0.74. 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Seelos Therapeutics Have Bought Stock Recently
It's good to see that Seelos Therapeutics insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$88k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership of Seelos Therapeutics
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Seelos Therapeutics insiders own 3.2% of the company, worth about US$2.2m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Seelos Therapeutics Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Seelos Therapeutics stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 6 warning signs for Seelos Therapeutics (2 don't sit too well with us!) that we believe deserve your full attention.
Of course Seelos Therapeutics 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.
