In This Article:
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Rezolute, Inc.'s (NASDAQ:RZLT) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Rezolute
The Last 12 Months Of Insider Transactions At Rezolute
In the last twelve months, the biggest single purchase by an insider was when Chief Financial Officer Daron Evans bought US$96k worth of shares at a price of US$1.93 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.76. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Rezolute insiders bought shares during the last year, they didn't sell. 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!
Rezolute is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Rezolute Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Rezolute. Insiders bought US$50k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Rezolute insiders have about 0.8% of the stock, worth approximately US$2.1m. We consider this fairly low insider ownership.
So What Do The Rezolute Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Rezolute stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rezolute. Our analysis shows 4 warning signs for Rezolute (2 make us uncomfortable!) and we strongly recommend you look at these before investing.