Journey Medical Decline Means Insider Profits Down To US$101k

Insiders who purchased Journey Medical Corporation (NASDAQ:DERM) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of US$237.3k is now worth US$338.1k.

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.

See our latest analysis for Journey Medical

Journey Medical Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Justin Smith bought US$104k worth of shares at a price of US$3.47 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.83. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$237k for 70.00k shares. But insiders sold 15.83k shares worth US$82k. In total, Journey Medical insiders bought more than they sold over the last year. 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!

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

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Journey Medical insiders own about US$5.4m worth of shares (which is 5.3% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Journey Medical Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Journey Medical shares in the last quarter. 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 Journey Medical stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Journey Medical. When we did our research, we found 2 warning signs for Journey Medical (1 can't be ignored!) that we believe deserve your full attention.

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.