Founder & MD of Tryptamine Therapeutics William Garner Buys 3.8% More Shares

Even if it's not a huge purchase, we think it was good to see that William Garner, the Founder & MD of Tryptamine Therapeutics Limited (ASX:TYP) recently shelled out AU$150k to buy stock, at AU$0.02 per share. However, it only increased their shares held by 3.8%, and it wasn't a huge purchase by absolute value, either.

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Tryptamine Therapeutics Insider Transactions Over The Last Year

In fact, the recent purchase by William Garner was the biggest purchase of Tryptamine Therapeutics shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.034. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Tryptamine Therapeutics insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Tryptamine Therapeutics

Tryptamine Therapeutics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Tryptamine Therapeutics

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 35% of Tryptamine Therapeutics shares, worth about AU$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Tryptamine Therapeutics Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Tryptamine Therapeutics shares, given these transactions (along with notable insider ownership of the company). 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. Every company has risks, and we've spotted 4 warning signs for Tryptamine Therapeutics (of which 2 are a bit concerning!) you should know about.

Of course Tryptamine Therapeutics 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 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.