Thomas Smith of Vapotherm, Inc. (NYSE:VAPO) Just Spent US$217k On Shares

Potential Vapotherm, Inc. (NYSE:VAPO) shareholders may wish to note that insider Thomas Smith recently bought US$217k worth of stock, paying US$27.14 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.4%.

View our latest analysis for Vapotherm

Vapotherm Insider Transactions Over The Last Year

In fact, the recent purchase by insider Thomas Smith was not their only acquisition of Vapotherm shares this year. They previously made an even bigger purchase of US$3.0m worth of shares at a price of US$29.57 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$25.78). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Thomas Smith was the only individual insider to buy shares in the last twelve months.

Thomas Smith bought 158.00k shares over the last 12 months at an average price of US$29.43. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Vapotherm

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Vapotherm insiders own about US$49m worth of shares. That equates to 7.4% 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.

So What Does This Data Suggest About Vapotherm Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Vapotherm shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vapotherm. Every company has risks, and we've spotted 2 warning signs for Vapotherm you should know about.

But note: Vapotherm 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, but not derivative transactions.

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