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Those following along with Rafael Holdings, Inc. (NYSE:RFL) will no doubt be intrigued by the recent purchase of shares by Howard Jonas, Founder & Chairman of the company, who spent a stonking US$6.0m on stock at an average price of US$1.86. That increased their holding by a full 83%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
Check out our latest analysis for Rafael Holdings
Rafael Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Howard Jonas is the biggest insider purchase of Rafael Holdings shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of US$2.16. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Howard Jonas purchased 3.34m shares over the year. The average price per share was US$3.31. 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 growing companies that insiders are buying.
Does Rafael Holdings 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. Insiders own 37% of Rafael Holdings shares, worth about US$19m. 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 Does This Data Suggest About Rafael Holdings Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Rafael Holdings shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Rafael Holdings has 6 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.