With ASP Isotopes Up 26%, Insider Buyers Count Their Returns

ASP Isotopes Inc. (NASDAQ:ASPI) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 26%, resulting in a US$89m rise in the company's market capitalisation, translating to a gain of 202% on their initial investment. In other words, the original US$452.4k purchase is now worth US$1.37m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for ASP Isotopes

ASP Isotopes Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Joshua Donfeld for US$100k worth of shares, at about US$0.96 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.83. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months ASP Isotopes insiders were buying shares, but not selling. Their average price was about US$1.27. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

ASP Isotopes is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

ASP Isotopes Insiders Bought Stock Recently

It's good to see that ASP Isotopes insiders have made notable investments in the company's shares. Director Robert Ryan spent US$119k on stock, and there wasn't any selling. That shows some optimism about the company's future.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ASP Isotopes insiders own about US$54m worth of shares. That equates to 24% 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 Do The ASP Isotopes Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in ASP Isotopes shares, given these transactions (along with notable insider ownership of the company). 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. At Simply Wall St, we've found that ASP Isotopes has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com