Insider Stock Buying Reaches AU$772.0k On Radiopharm Theranostics

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Radiopharm Theranostics Limited's (ASX:RAD) instance, it's good news for shareholders.

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 Radiopharm Theranostics

The MD, CEO & Director Riccardo Canevari made the biggest insider purchase in the last 12 months. That single transaction was for AU$241k worth of shares at a price of AU$0.031 each. That implies that an insider found the current price of AU$0.031 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Radiopharm Theranostics insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid AU$772k for 22.43m shares. On the other hand they divested 1.50m shares, for AU$43k. In the last twelve months there was more buying than selling by Radiopharm Theranostics insiders. The average buy price was around AU$0.034. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Radiopharm Theranostics

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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Radiopharm Theranostics insiders own 11% of the company, worth about AU$7.9m. We do generally prefer see higher levels of insider ownership.

So What Do The Radiopharm Theranostics Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Radiopharm Theranostics shares in the last quarter. 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 Radiopharm Theranostics stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Radiopharm Theranostics. For example, Radiopharm Theranostics has 3 warning signs (and 1 which is significant) we think you should know about.

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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.