Director Frank Oakes Just Sold A Bunch Of Shares In Edesa Biotech, Inc. (NASDAQ:EDSA)

Investors may wish to note that the Director of Edesa Biotech, Inc., Frank Oakes, recently netted US$58k from selling stock, receiving an average price of US$7.25. While that isn't a lot of money, it was a substantial 100% of their holding, so certainly isn't a good sign.

Check out our latest analysis for Edesa Biotech

Edesa Biotech Insider Transactions Over The Last Year

Notably, that recent sale by Frank Oakes is the biggest insider sale of Edesa Biotech shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$7.07. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 10.50k shares worth US$26k. But they sold 7.99k shares for US$58k. 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!

I will like Edesa Biotech better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 25% of Edesa Biotech shares, worth about US$19m. 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 Edesa Biotech Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 6 warning signs for Edesa Biotech you should be aware of, and 2 of these are a bit unpleasant.

But note: Edesa Biotech 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, but not derivative transactions.

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