Insiders Of Delcath Systems Reap Rewards After Their Investment Jumps Another US$1.2m

Last week, Delcath Systems, Inc. (NASDAQ:DCTH) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 49% last week, resulting in a US$73m increase in the company's market worth, implying a 187% gain on their initial purchase. In other words, the original US$641.4k purchase is now worth US$1.84m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Delcath Systems

The Last 12 Months Of Insider Transactions At Delcath Systems

In the last twelve months, the biggest single purchase by an insider was when Chief Medical Officer Vojislav Vukovic bought US$149k worth of shares at a price of US$2.48 per share. Even though the purchase was made at a significantly lower price than the recent price (US$8.03), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Delcath Systems insiders were buying shares, but not selling. They paid about US$2.80 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Delcath Systems

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. Insiders own 2.7% of Delcath Systems shares, worth about US$5.7m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Delcath Systems Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Delcath Systems insiders bought more shares in the company. 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 Delcath Systems is showing 4 warning signs in our investment analysis, and 2 of those make us uncomfortable...

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.

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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.