Rockwell Medical's Stock Sinks To US$1.79, But Insiders Sold Even Lower

Rockwell Medical, Inc.'s (NASDAQ:RMTI) stock price has dropped 13% in the previous week, but insiders who sold US$70k in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$2.35 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Rockwell Medical

Rockwell Medical Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Mark Ravich, for US$70k worth of shares, at about US$2.40 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$1.79. So it may not tell us anything about how insiders feel about the current share price. Mark Ravich was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Rockwell Medical Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Rockwell Medical. Specifically, Independent Director Mark Ravich ditched US$70k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. We usually like to see fairly high levels of insider ownership. Our information indicates that Rockwell Medical insiders own about US$514k worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Rockwell Medical Insiders?

An insider hasn't bought Rockwell Medical stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. 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. To that end, you should learn about the 5 warning signs we've spotted with Rockwell Medical (including 1 which shouldn't be ignored).

But note: Rockwell Medical may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.