Insider Returns Down To US$248k As Heron Therapeutics' Stock Dips 10%

Insiders who purchased Heron Therapeutics, Inc. (NASDAQ:HRTX) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of US$287.8k is now worth US$536.3k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Heron Therapeutics

The Last 12 Months Of Insider Transactions At Heron Therapeutics

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Craig Collard bought US$138k worth of shares at a price of US$0.92 per share. Even though the purchase was made at a significantly lower price than the recent price (US$1.73), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Heron Therapeutics insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Heron Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Heron Therapeutics Boast High 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. Our data suggests Heron Therapeutics insiders own 1.1% of the company, worth about US$3.1m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Heron Therapeutics Tell Us?

It doesn't really mean much that no insider has traded Heron Therapeutics shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Heron Therapeutics stock. 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 3 warning signs for Heron Therapeutics you should be aware of, and 1 of these makes us a bit uncomfortable.

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.