Yahoo Finance A PLx Pharma Inc. (NASDAQ:PLXP) insider increased their holdings by 5.4% last year
Insiders were net buyers of PLx Pharma Inc.'s (NASDAQ:PLXP ) stock during the past year. That is, insiders bought more stock than they sold.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for PLx Pharma
PLx Pharma Insider Transactions Over The Last Year
The Executive Chairman Michael Valentino made the biggest insider purchase in the last 12 months. That single transaction was for US$200k worth of shares at a price of US$8.00 each. So it's clear an insider wanted to buy, at around the current price, which is US$8.06. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Michael Valentino.
Michael Valentino bought a total of 33.00k shares over the year at an average price of US$9.09. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
PLx Pharma is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.1% of PLx Pharma shares, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The PLx Pharma Insider Transactions Indicate?
It doesn't really mean much that no insider has traded PLx Pharma shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in PLx Pharma and we see no evidence to suggest they are worried about 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. For instance, we've identified 3 warning signs for PLx Pharma (1 is a bit unpleasant) you should be aware of.
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.
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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.
