Stock Analysis

Independent Director Timothy Nelson Just Bought A Handful Of Shares In Impel NeuroPharma, Inc. (NASDAQ:IMPL)

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Potential Impel NeuroPharma, Inc. (NASDAQ:IMPL) shareholders may wish to note that the Independent Director, Timothy Nelson, recently bought US$108k worth of stock, paying US$10.76 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Impel NeuroPharma

The Last 12 Months Of Insider Transactions At Impel NeuroPharma

The Chairman Adrian Adams made the biggest insider purchase in the last 12 months. That single transaction was for US$280k worth of shares at a price of US$15.89 each. That means that an insider was happy to buy shares at above the current price of US$9.37. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Impel NeuroPharma insiders bought shares during the last year, they didn't sell. The average buy price was around US$12.91. This is nice to see since it implies that insiders might see value around current prices. 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!

NasdaqGM:IMPL Insider Trading Volume November 24th 2021

Impel NeuroPharma is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Impel NeuroPharma Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Impel NeuroPharma insiders own 2.4% of the company, worth about US$5.1m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Impel NeuroPharma Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Impel NeuroPharma insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 2 warning signs for Impel NeuroPharma (1 doesn't sit too well with us) you should be aware of.

But note: Impel NeuroPharma 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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