Independent Chairman of the Board of Neuronetics Picks Up 33% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Neuronetics, Inc. (NASDAQ:STIM) Independent Chairman of the Board, Robert Cascella, recently bought US$58k worth of stock, for US$0.83 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 33%.

View our latest analysis for Neuronetics

The Last 12 Months Of Insider Transactions At Neuronetics

The President, Keith Sullivan, made the biggest insider sale in the last 12 months. That single transaction was for US$134k worth of shares at a price of US$3.23 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.02). So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$222k for 184.17k shares. But insiders sold 251.46k shares worth US$742k. In total, Neuronetics insiders sold more than they bought over the last year. They sold for an average price of about US$2.95. Insider selling doesn't make us excited to buy. However, we do note that the average sale price was significantly higher than the current share price (which is US$1.02). You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Neuronetics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 6.7% of Neuronetics shares, worth about US$2.1m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Neuronetics Insiders?

It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. Neither the level of insider ownership, nor the transactions over the last twelve months inspire us, but we think the recent buying is positive. 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. Case in point: We've spotted 4 warning signs for Neuronetics you should be aware of, and 1 of them is potentially serious.

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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.