Theratechnologies' Market Cap Up CA$8.7m Following Year Of Insider Stock Buying

Theratechnologies Inc. (TSE:TH) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a CA$8.7m addition to the company’s market value. In other words, the original US$430.7k purchase is now worth US$573.5k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Theratechnologies

Theratechnologies Insider Transactions Over The Last Year

The Independent Director Andrew Molson made the biggest insider purchase in the last 12 months. That single transaction was for CA$182k worth of shares at a price of CA$1.42 each. We do like to see buying, but this purchase was made at well below the current price of CA$1.84. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Theratechnologies insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Theratechnologies 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own CA$887k worth of Theratechnologies stock, about 1.1% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Theratechnologies Tell Us?

It doesn't really mean much that no insider has traded Theratechnologies shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Theratechnologies insiders are doubting 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 3 warning signs for Theratechnologies (of which 2 make us uncomfortable!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.