Context Therapeutics Gains 11%, Insider Trades Reap Benefit

Last week, Context Therapeutics Inc. (NASDAQ:CNTX) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a US$8.7m increase in the company's market worth, implying a 49% gain on their initial purchase. As a result, their original purchase of US$107.1k worth of stock is now worth US$160.0k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Context Therapeutics Insider Transactions Over The Last Year

The Co-Founder Martin Lehr made the biggest insider purchase in the last 12 months. That single transaction was for US$70k worth of shares at a price of US$0.70 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.00. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Context Therapeutics insiders may have bought shares in the last year, but they didn't sell any. 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!

Check out our latest analysis for Context Therapeutics

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).

Does Context Therapeutics 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. From looking at our data, insiders own US$1.2m worth of Context Therapeutics stock, about 1.4% of the company. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Context Therapeutics Tell Us?

The fact that there have been no Context Therapeutics insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Context Therapeutics insiders bought more shares in the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Context Therapeutics has 5 warning signs (and 2 which are concerning) we think you should know about.

Of course Context Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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.