Insider Spends US$100k Buying More Shares In Athira Pharma

Investors who take an interest in Athira Pharma, Inc. (NASDAQ:ATHA) should definitely note that the Independent Chairwoman of the Board, Kelly Romano, recently paid US$2.36 per share to buy US$100k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 111%, potentially signalling some real optimism.

Check out our latest analysis for Athira Pharma

Athira Pharma Insider Transactions Over The Last Year

Notably, that recent purchase by Kelly Romano is the biggest insider purchase of Athira Pharma shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.41). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kelly Romano was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Athira Pharma

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. Our data indicates that Athira Pharma insiders own about US$6.2m worth of shares (which is 7.4% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Athira Pharma 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. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Athira Pharma insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Athira Pharma. Be aware that Athira Pharma is showing 5 warning signs in our investment analysis, and 2 of those don't sit too well with us...

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.

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