Have Insiders Been Selling Neuren Pharmaceuticals Limited (ASX:NEU) Shares This Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Neuren Pharmaceuticals Limited (ASX:NEU), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Neuren Pharmaceuticals

The Last 12 Months Of Insider Transactions At Neuren Pharmaceuticals

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Director, Trevor Scott, for AU$520k worth of shares, at about AU$1.30 per share. So what is clear is that an insider saw fit to sell at around the current price of AU$1.29. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Trevor Scott was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 85.84k shares worth AU$119k. But they sold 400.00k shares for AU$520k. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Neuren Pharmaceuticals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 6.5% of Neuren Pharmaceuticals shares, worth about AU$9.5m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Do The Neuren Pharmaceuticals Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Neuren Pharmaceuticals insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Neuren Pharmaceuticals has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course Neuren Pharmaceuticals 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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