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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Larimar Therapeutics, Inc. (NASDAQ:LRMR), it sends a favourable message to the company's shareholders.
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 Larimar Therapeutics
The Last 12 Months Of Insider Transactions At Larimar Therapeutics
The Independent Director Thomas Hamilton made the biggest insider purchase in the last 12 months. That single transaction was for US$500k worth of shares at a price of US$8.74 each. That means that an insider was happy to buy shares at around the current price of US$8.98. 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 purchases were made at close to current prices.
While Larimar Therapeutics insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Larimar Therapeutics
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. From our data, it seems that Larimar Therapeutics insiders own 1.2% of the company, worth about US$7.1m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Larimar Therapeutics Insiders?
It doesn't really mean much that no insider has traded Larimar Therapeutics shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Larimar Therapeutics insiders are doubting the company. While it's good to be aware of 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. Case in point: We've spotted 5 warning signs for Larimar Therapeutics you should be aware of, and 2 of them shouldn't be ignored.