Independent Non-Executive Director of Amplia Therapeutics Picks Up 25% More Stock

Even if it's not a huge purchase, we think it was good to see that Robert Peach, the Independent Non-Executive Director of Amplia Therapeutics Limited (ASX:ATX) recently shelled out AU$125k to buy stock, at AU$0.11 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 25%.

See our latest analysis for Amplia Therapeutics

Amplia Therapeutics Insider Transactions Over The Last Year

The insider Allan Moss made the biggest insider purchase in the last 12 months. That single transaction was for AU$296k worth of shares at a price of AU$0.055 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.086. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Amplia Therapeutics insiders were buying shares, but not selling. The average buy price was around AU$0.072. 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. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Does Amplia Therapeutics Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Amplia Therapeutics insiders own about AU$5.0m worth of shares. That equates to 17% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Amplia Therapeutics Tell Us?

The recent insider purchases are heartening. 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. When combined with notable insider ownership, these factors suggest Amplia Therapeutics insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Amplia Therapeutics (2 don't sit too well with us!) and we strongly recommend you look at these before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.