InspireMD Insiders Enjoying US$133k Appreciation On US$526.5k Investment

Insiders who bought InspireMD, Inc. (NASDAQ:NSPR) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$5.5m as a result of the stock's 12% gain over the same period. As a result, their original purchase of US$526.5k worth of stock is now worth US$659.3k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for InspireMD

InspireMD Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Michael Berman bought US$200k worth of shares at a price of US$1.63 per share. We do like to see buying, but this purchase was made at well below the current price of US$2.23. 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 InspireMD 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!

InspireMD is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of InspireMD

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. I reckon it's a good sign if insiders own a significant number of shares in the company. InspireMD insiders own about US$11m worth of shares. That equates to 22% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At InspireMD Tell Us?

The fact that there have been no InspireMD insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in InspireMD and their transactions don't cause us concern. While we like knowing 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. Our analysis shows 3 warning signs for InspireMD (2 can't be ignored!) and we strongly recommend you look at them before investing.

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.