Insiders Enjoy US$1.1m Return After Buying Inhibikase Therapeutics Stock

Insiders who purchased Inhibikase Therapeutics, Inc. (NASDAQ:IKT) shares in the past 12 months are unlikely to be deeply impacted by the stock's 32% decline over the past week. After accounting for the recent loss, the US$2.70m worth of shares they purchased is now worth US$3.78m, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Inhibikase Therapeutics

Inhibikase Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Roberto Bellini for US$2.0m worth of shares, at about US$1.37 per share. Even though the purchase was made at a significantly lower price than the recent price (US$1.92), we still think insider buying is a positive. 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.

In the last twelve months Inhibikase Therapeutics insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Inhibikase 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.

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. Our data indicates that Inhibikase Therapeutics insiders own about US$8.0m worth of shares (which is 4.3% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Inhibikase Therapeutics Insider Transactions Indicate?

The fact that there have been no Inhibikase Therapeutics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Inhibikase Therapeutics insiders are doubting 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 (3 are significant!) that you ought to be aware of before buying any shares in Inhibikase Therapeutics.

Of course Inhibikase 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.