Stock Analysis

Amplia Therapeutics' Market Cap Up AU$1.4m Following Year Of Insider Stock Buying

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Amplia Therapeutics Limited (ASX:ATX) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a AU$1.4m rise in the company's market capitalisation, translating to a gain of 18% on their initial investment. In other words, the original AU$479.4k purchase is now worth AU$566.5k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out 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. We do like to see buying, but this purchase was made at well below the current price of AU$0.065. 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 Amplia Therapeutics 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

ASX:ATX Insider Trading Volume May 25th 2024

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Amplia Therapeutics Have Bought Stock Recently

It's good to see that Amplia Therapeutics insiders have made notable investments in the company's shares. Overall, four insiders shelled out AU$479k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of Amplia Therapeutics

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Amplia Therapeutics insiders own 24% of the company, worth about AU$3.0m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Amplia Therapeutics Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Amplia Therapeutics shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Amplia Therapeutics (of which 2 can't be ignored!) 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.