The Independent Director of Vapotherm, Inc. (NYSE:VAPO), Anthony Arnerich, Just Bought 59% More Shares

Investors who take an interest in Vapotherm, Inc. (NYSE:VAPO) should definitely note that the Independent Director, Anthony Arnerich, recently paid US$21.84 per share to buy US$109k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 59%, potentially signalling some real optimism.

See our latest analysis for Vapotherm

The Last 12 Months Of Insider Transactions At Vapotherm

In the last twelve months, the biggest single purchase by an insider was when insider Thomas Smith bought US$3.0m worth of shares at a price of US$29.57 per share. That means that even when the share price was higher than US$26.38 (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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 163.00k shares for US$4.8m. But insiders sold 2.50k shares worth US$69k. In the last twelve months there was more buying than selling by Vapotherm insiders. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Vapotherm Boast High 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. Vapotherm insiders own about US$48m worth of shares. That equates to 7.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Vapotherm Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Vapotherm we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Vapotherm and understanding these should be part of your investment process.

Of course Vapotherm 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, but not derivative transactions.

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