Insider Buying: The Neuren Pharmaceuticals Limited (ASX:NEU) Independent Non-Executive Chairman Just Bought 21% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Neuren Pharmaceuticals Limited (ASX:NEU) Independent Non-Executive Chairman, Patrick Donald Davies, recently bought AU$61k worth of stock, for AU$1.40 per share. That purchase might not be huge but it did increase their holding by 21%.

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. That means that an insider was selling shares at slightly below the current price (AU$1.64). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 10% of Trevor Scott's holding. The only individual insider seller over the last year was Trevor Scott.

Over the last year, we can see that insiders have bought 97.94k shares worth AU$136k. But they sold 400.00k shares for AU$520k. 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!

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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. Our data indicates that Neuren Pharmaceuticals insiders own about AU$11m worth of shares (which is 5.8% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Neuren Pharmaceuticals Tell Us?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Neuren Pharmaceuticals insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. 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. Case in point: We've spotted 2 warning signs for Neuren Pharmaceuticals you should be aware of, and 1 of these is significant.

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, 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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