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Even if it's not a huge purchase, we think it was good to see that Avanish Vellanki, the Co-Founder of Rain Therapeutics Inc. (NASDAQ:RAIN) recently shelled out US$57k to buy stock, at US$2.29 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for Rain Therapeutics
Rain Therapeutics Insider Transactions Over The Last Year
Notably, that recent purchase by Avanish Vellanki is the biggest insider purchase of Rain Therapeutics shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$2.70), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Rain Therapeutics insiders bought shares during the last year, they didn't sell. The average buy price was around US$3.87. This is nice to see since it implies that insiders might see value around current prices. 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!
Rain Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Rain Therapeutics
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Rain Therapeutics insiders own about US$10m worth of shares. That equates to 15% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Rain Therapeutics Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Rain Therapeutics shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rain Therapeutics. Case in point: We've spotted 5 warning signs for Rain Therapeutics you should be aware of, and 2 of them are significant.