Chimeric Therapeutics' Market Cap Drops To AU$9.8m Leaving Insiders With Losses

Insiders who bought AU$1.65m worth of Chimeric Therapeutics Limited's (ASX:CHM) stock at an average buy price of AU$0.0079 over the last year may be disappointed by the recent 14% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$630.0k.

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.

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The Last 12 Months Of Insider Transactions At Chimeric Therapeutics

In the last twelve months, the biggest single purchase by an insider was when Founder & Executive Chairman Paul Hopper bought AU$800k worth of shares at a price of AU$0.008 per share. That means that even when the share price was higher than AU$0.003 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Paul Hopper.

Paul Hopper purchased 210.00m shares over the year. The average price per share was AU$0.0079. 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!

View our latest analysis for Chimeric Therapeutics

Chimeric 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.

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. Insiders own 10% of Chimeric Therapeutics shares, worth about AU$990k, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Chimeric Therapeutics Insider Transactions Indicate?

The fact that there have been no Chimeric Therapeutics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Chimeric Therapeutics stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for Chimeric Therapeutics you should be aware of, and 4 of these can't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.