When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Rani Therapeutics Holdings, Inc.'s (NASDAQ:RANI) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Rani Therapeutics Holdings

Rani Therapeutics Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Jean-Luc Butel was the biggest purchase of Rani Therapeutics Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$2.01 (the recent price), an insider wanted to purchase shares. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Rani Therapeutics Holdings insiders bought shares during the last year, they didn't sell. 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!

Rani Therapeutics Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Rani Therapeutics Holdings Have Bought Stock Recently

It's good to see that Rani Therapeutics Holdings insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$113k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of Rani Therapeutics Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data isn't picking up on much insider ownership at Rani Therapeutics Holdings, though insiders do hold about US$813k worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. We might be missing something but that seems like very low insider ownership.

So What Do The Rani Therapeutics Holdings Insider Transactions Indicate?

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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Rani Therapeutics Holdings stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rani Therapeutics Holdings. Be aware that Rani Therapeutics Holdings is showing 4 warning signs in our investment analysis, and 2 of those can't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.