Amplia Therapeutics Decline Means Insider Profits Down To AU$382k

Amplia Therapeutics Limited (ASX:ATX) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 21% decline in the stock price. Even after accounting for the recent loss, the AU$524.9k worth of stock purchased by them is now worth AU$906.6k or in other words, their investment continues to give good returns.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Amplia Therapeutics

The Last 12 Months Of Insider Transactions At Amplia Therapeutics

In the last twelve months, the biggest single purchase by an insider was when insider Allan Moss bought AU$296k worth of shares at a price of AU$0.055 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.095. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Amplia Therapeutics 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!

Amplia 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.

Amplia Therapeutics Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Amplia Therapeutics. Independent Non-Executive Director Robert Peach bought AU$46k worth of shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Amplia Therapeutics insiders own 21% of the company, worth about AU$5.5m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Amplia Therapeutics Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Amplia Therapeutics insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Amplia Therapeutics has 5 warning signs (and 2 which are significant) we think you should know about.

Of course Amplia Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.