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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 Processa Pharmaceuticals, Inc. (NASDAQ:PCSA), that sends out a positive 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 Processa Pharmaceuticals
The Last 12 Months Of Insider Transactions At Processa Pharmaceuticals
Over the last year, we can see that the biggest insider purchase was by Co-Founder David Young for US$99k worth of shares, at about US$0.80 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.59). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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 Processa Pharmaceuticals 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!
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.
Insiders At Processa Pharmaceuticals Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Processa Pharmaceuticals. In total, insiders bought US$213k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Processa Pharmaceuticals Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that Processa Pharmaceuticals insiders own about US$274k worth of shares (which is 9.7% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Processa Pharmaceuticals Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Processa Pharmaceuticals insiders are reasonably well aligned, and optimistic for the future. 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. To that end, you should learn about the 6 warning signs we've spotted with Processa Pharmaceuticals (including 4 which make us uncomfortable).