Insiders See US$9.05m Investment In DiaMedica Therapeutics Jump Last Week

Insiders who bought DiaMedica Therapeutics Inc. (NASDAQ:DMAC) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$18m as a result of the stock's 11% gain over the same period. As a result, the stock they originally bought for US$9.05m is now worth US$15.9m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for DiaMedica Therapeutics

The Last 12 Months Of Insider Transactions At DiaMedica Therapeutics

The insider Jan Stahlberg made the biggest insider purchase in the last 12 months. That single transaction was for US$3.0m worth of shares at a price of US$2.50 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.38. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While DiaMedica Therapeutics 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

DiaMedica Therapeutics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At DiaMedica Therapeutics Have Bought Stock Recently

It's good to see that DiaMedica Therapeutics insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$9.0m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Does DiaMedica Therapeutics Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. DiaMedica Therapeutics insiders own about US$73m worth of shares. That equates to 39% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The DiaMedica Therapeutics Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in DiaMedica Therapeutics shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 5 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in DiaMedica Therapeutics.

Of course DiaMedica 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.