Insider Buyers Lose US$21k As NeuroOne Medical Technologies Sheds US$6.2m

The recent 50% drop in NeuroOne Medical Technologies Corporation's (NASDAQ:NMTC) stock could come as a blow to insiders who purchased US$150.0k worth of stock at an average buy price of US$0.50 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$129.0k.

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.

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The Last 12 Months Of Insider Transactions At NeuroOne Medical Technologies

Notably, that recent purchase by Ronald McClurg is the biggest insider purchase of NeuroOne Medical Technologies shares that we've seen in the last year. That means that even when the share price was higher than US$0.43 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$150k for 300.00k shares. But insiders sold 27.99k shares worth US$25k. Overall, NeuroOne Medical Technologies insiders were net buyers during the last year. 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!

Check out our latest analysis for NeuroOne Medical Technologies

NeuroOne Medical Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

NeuroOne Medical Technologies Insiders Bought Stock Recently

Over the last quarter, NeuroOne Medical Technologies insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$150k worth of shares. This makes one think the business has some good points.

Insider Ownership Of NeuroOne Medical Technologies

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that NeuroOne Medical Technologies insiders own about US$1.6m worth of shares (which is 7.7% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At NeuroOne Medical Technologies Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that NeuroOne Medical Technologies insiders are expecting a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in NeuroOne Medical Technologies.

Of course NeuroOne Medical Technologies 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.