In This Article:
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Rezolute, Inc. (NASDAQ:RZLT), it sends a favourable message to the company's 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.
Check out our latest analysis for Rezolute
Rezolute Insider Transactions Over The Last Year
The Chief Financial Officer Daron Evans made the biggest insider purchase in the last 12 months. That single transaction was for US$96k worth of shares at a price of US$1.93 each. We do like to see buying, but this purchase was made at well below the current price of US$4.91. 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.
In the last twelve months Rezolute insiders were buying shares, but not selling. The average buy price was around US$2.27. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Rezolute is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Rezolute Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Rezolute. We can see that Chief Financial Officer Daron Evans paid US$137k for shares in the company. No-one sold. That shows some optimism about the company's future.
Does Rezolute 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Rezolute insiders have about 0.8% of the stock, worth approximately US$2.4m. We prefer to see high levels of insider ownership.
So What Do The Rezolute Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Rezolute insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rezolute. Every company has risks, and we've spotted 3 warning signs for Rezolute (of which 2 are a bit unpleasant!) you should know about.