In This Article:
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.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out 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. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.18). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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 Larimar Therapeutics insiders were buying shares, but not selling. 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!
Larimar Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Larimar Therapeutics Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Larimar Therapeutics insiders own 1.2% of the company, worth about US$3.1m. I generally like to see higher levels of 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. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Larimar Therapeutics insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Larimar Therapeutics.