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Investors who take an interest in Rapport Therapeutics, Inc. (NASDAQ:RAPP) should definitely note that the Chief Financial Officer, Troy Ignelzi, recently paid US$10.10 per share to buy US$101k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Rapport Therapeutics
The Last 12 Months Of Insider Transactions At Rapport Therapeutics
Notably, that recent purchase by Troy Ignelzi is the biggest insider purchase of Rapport Therapeutics shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$10.51. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Rapport Therapeutics insiders decided to buy shares at close to current prices.
Rapport Therapeutics insiders may have bought shares in the last year, but they didn't sell any. 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!
Rapport 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.
Insider Ownership Of Rapport Therapeutics
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. Rapport Therapeutics insiders own about US$25m worth of shares. That equates to 6.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Rapport Therapeutics Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Rapport Therapeutics we think they are probably pretty confident of a bright future. 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 that end, you should learn about the 4 warning signs we've spotted with Rapport Therapeutics (including 3 which are a bit concerning).