Despite Recent Gains, Radiopharm Theranostics Insiders Are Still Down AU$125k

Insiders who bought AU$651.2k worth of Radiopharm Theranostics Limited (ASX:RAD) stock in the last year have seen some of their losses recouped as the stock gained 21% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled AU$125k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Radiopharm Theranostics

The Last 12 Months Of Insider Transactions At Radiopharm Theranostics

In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Riccardo Canevari bought AU$241k worth of shares at a price of AU$0.031 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.029). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 18.13m shares worth AU$651k. But insiders sold 1.50m shares worth AU$43k. In the last twelve months there was more buying than selling by Radiopharm Theranostics insiders. The average buy price was around AU$0.036. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Radiopharm Theranostics Have Bought Stock Recently

At Radiopharm Theranostics,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, two insiders bought AU$250k worth of shares in that time. But Founder & Executive Chairman Paul Hopper sold shares worth AU$43k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Does Radiopharm Theranostics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 12% of Radiopharm Theranostics shares, worth about AU$7.5m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Radiopharm Theranostics Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Radiopharm Theranostics 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. Be aware that Radiopharm Theranostics is showing 5 warning signs in our investment analysis, and 2 of those don't sit too well with us...

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.