This Insider Has Just Sold Shares In ADMA Biologics

Some ADMA Biologics, Inc. (NASDAQ:ADMA) shareholders may be a little concerned to see that the Co-Founder, Adam Grossman, recently sold a substantial US$1.1m worth of stock at a price of US$10.72 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.9%.

Check out our latest analysis for ADMA Biologics

ADMA Biologics Insider Transactions Over The Last Year

Notably, that recent sale by Adam Grossman is the biggest insider sale of ADMA Biologics shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$10.63. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 155.00k shares worth US$580k. But they sold 561.58k shares for US$3.1m. All up, insiders sold more shares in ADMA Biologics than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like ADMA Biologics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does ADMA Biologics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. ADMA Biologics insiders own about US$49m worth of shares. That equates to 2.0% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About ADMA Biologics Insiders?

An insider hasn't bought ADMA Biologics stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ADMA Biologics. While conducting our analysis, we found that ADMA Biologics has 2 warning signs and it would be unwise to ignore them.

But note: ADMA Biologics 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.

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