Are Insiders Buying Greenwich LifeSciences, Inc. (NASDAQ:GLSI) Stock?

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Greenwich LifeSciences, Inc. (NASDAQ:GLSI).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Greenwich LifeSciences

Greenwich LifeSciences Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO, CFO & Director Snehal Patel bought US$657k worth of shares at a price of US$5.75 per share. We do like to see buying, but this purchase was made at well below the current price of US$39.04. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Greenwich LifeSciences 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!

Greenwich LifeSciences is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Greenwich LifeSciences Insiders Bought Stock Recently

We saw some Greenwich LifeSciences insider buying shares in the last three months. Insiders shelled out US$46k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership of Greenwich LifeSciences

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Greenwich LifeSciences insiders own 82% of the company, worth about US$405m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Greenwich LifeSciences Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Greenwich LifeSciences insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Greenwich LifeSciences. To that end, you should learn about the 3 warning signs we've spotted with Greenwich LifeSciences (including 1 which shouldn't be ignored).

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, but not derivative transactions.

When trading Greenwich LifeSciences or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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