Journey Medical Insiders Up US$246k On US$520.8k Investment

Insiders who bought Journey Medical Corporation (NASDAQ:DERM) stock lover the last 12 months are probably not as affected by last week’s 16% loss. After taking the recent loss into consideration, the US$520.8k worth of stock they bought is now worth US$767.2k, indicating that their investment yielded a positive return.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Journey Medical

Journey Medical Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Lindsay Rosenwald for US$223k worth of shares, at about US$2.23 per share. We do like to see buying, but this purchase was made at well below the current price of US$3.76. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 204.04k shares for US$521k. On the other hand they divested 73.46k shares, for US$119k. Overall, Journey Medical insiders were net buyers during the last year. They paid about US$2.55 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!

Journey Medical is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Are Journey Medical Insiders Buying Or Selling?

The last three months saw some Journey Medical insider selling. insider Jeffrey Paley divested only US$9.1k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 12% of Journey Medical shares, worth about US$8.3m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The Journey Medical Insider Transactions Indicate?

We did not see any insider buying in the last three months, but we did see selling. However, the sales are not big enough to concern us at all. 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. While we like knowing 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. Every company has risks, and we've spotted 4 warning signs for Journey Medical you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.