Insiders' US$1.02m Investments In Red Following CalciMedica's US$3.6m Dip In Market Value

The recent price decline of 15% in CalciMedica, Inc.'s (NASDAQ:CALC) stock may have disappointed insiders who bought US$1.02m worth of shares at an average price of US$3.56 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$408.8k which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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CalciMedica Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board Robert Wilson bought US$201k worth of shares at a price of US$3.72 per share. That means that an insider was happy to buy shares at above the current price of US$1.43. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While CalciMedica insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for CalciMedica

CalciMedica is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At CalciMedica Have Bought Stock Recently

We saw some CalciMedica insider buying shares in the last three months. Insiders bought US$31k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that CalciMedica insiders own about US$2.6m worth of shares (which is 12% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About CalciMedica Insiders?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more CalciMedica stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that CalciMedica is showing 4 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

But note: CalciMedica 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.