Stock Analysis

Indaptus Therapeutics Insider Confidence Rewarded, Stock Hits US$21m Market Cap

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Indaptus Therapeutics, Inc. (NASDAQ:INDP) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 17%, resulting in a US$3.0m rise in the company's market capitalisation, translating to a gain of 20% on their initial investment. Put another way, the original US$237.9k acquisition is now worth US$285.1k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Indaptus Therapeutics

Indaptus Therapeutics Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Glen Anderson bought US$216k worth of shares at a price of US$2.34 per share. That means that an insider was happy to buy shares at around the current price of US$2.49. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Indaptus Therapeutics share holders is that insiders were buying at near the current price.

While Indaptus Therapeutics insiders bought shares during the last year, they didn't sell. Their average price was about US$2.08. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

NasdaqCM:INDP Insider Trading Volume November 3rd 2023

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Indaptus Therapeutics Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Indaptus Therapeutics. We can see that insider Glen Anderson paid US$216k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Does Indaptus 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. Insiders own 40% of Indaptus Therapeutics shares, worth about US$8.3m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Indaptus Therapeutics Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Indaptus Therapeutics shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Indaptus Therapeutics. Case in point: We've spotted 5 warning signs for Indaptus Therapeutics you should be aware of, and 3 of them are significant.

But note: Indaptus Therapeutics 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 of direct interests only, but not derivative transactions or indirect interests.

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