Independent Director of Eupraxia Pharmaceuticals Joseph Freedman Buys 13% More Shares

Those following along with Eupraxia Pharmaceuticals Inc. (TSE:EPRX) will no doubt be intrigued by the recent purchase of shares by Joseph Freedman, Independent Director of the company, who spent a stonking CA$1.8m on stock at an average price of CA$7.64. Not only is that a big swing, but it increased their holding size by 13%, which is definitely great to see.

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The Last 12 Months Of Insider Transactions At Eupraxia Pharmaceuticals

In fact, the recent purchase by Joseph Freedman was the biggest purchase of Eupraxia Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is CA$7.99. Of course they may have changed their mind. But this suggests they are optimistic. 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 Eupraxia Pharmaceuticals insiders decided to buy shares at close to current prices.

While Eupraxia Pharmaceuticals insiders bought shares during the last year, they didn't sell. 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 Eupraxia Pharmaceuticals

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Eupraxia Pharmaceuticals insiders own 18% of the company, worth about CA$70m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Eupraxia Pharmaceuticals Tell Us?

It is good to see recent purchasing. 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. Given that insiders also own a fair bit of Eupraxia Pharmaceuticals we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Eupraxia Pharmaceuticals. For example, Eupraxia Pharmaceuticals has 3 warning signs (and 2 which shouldn't be ignored) 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.