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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Tryptamine Therapeutics Limited's (ASX:TYP) case, it's fantastic 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.
The Last 12 Months Of Insider Transactions At Tryptamine Therapeutics
In fact, the recent purchase by William Garner was the biggest purchase of Tryptamine Therapeutics shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of AU$0.034. 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 Tryptamine Therapeutics insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Tryptamine Therapeutics
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Tryptamine Therapeutics Insiders Bought Stock Recently
It's good to see that Tryptamine Therapeutics insiders have made notable investments in the company's shares. We can see that Founder & MD William Garner paid AU$150k for shares in the company. No-one sold. This makes one think the business has some good points.
Does Tryptamine Therapeutics Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 35% of Tryptamine Therapeutics shares, worth about AU$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Tryptamine Therapeutics Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Tryptamine Therapeutics we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Tryptamine Therapeutics has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.