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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 Tempest Therapeutics, Inc. (NASDAQ:TPST), it sends a favourable 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 do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Tempest Therapeutics
Tempest Therapeutics Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Stephen Brady bought US$74k worth of shares at a price of US$2.11 per share. That means that even when the share price was higher than US$0.94 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Tempest Therapeutics insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.
Does Tempest Therapeutics Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From what we can see in our data, insiders own only about US$183k worth of Tempest Therapeutics shares. We might be missing something but that seems like very low insider ownership.
So What Does This Data Suggest About Tempest Therapeutics Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. 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 Tempest Therapeutics insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tempest Therapeutics. For example, Tempest Therapeutics has 7 warning signs (and 4 which are a bit unpleasant) we think you should know about.