Hopeful Week For Insiders Who Bought US$540.7k Of Larimar Therapeutics Stock

Some of the losses seen by insiders who purchased US$540.7k worth of Larimar Therapeutics, Inc. (NASDAQ:LRMR) shares over the past year were recovered after the stock increased by 13% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$85k.

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 Larimar Therapeutics

Larimar Therapeutics Insider Transactions Over The Last Year

The Independent Director Thomas Hamilton made the biggest insider purchase in the last 12 months. That single transaction was for US$500k worth of shares at a price of US$8.74 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.09). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

Larimar Therapeutics 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are 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. Based on our data, Larimar Therapeutics insiders have about 1.2% of the stock, worth approximately US$4.8m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Larimar Therapeutics Tell Us?

It doesn't really mean much that no insider has traded Larimar Therapeutics shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Larimar Therapeutics insiders are doubting the company. While it's good to be aware of 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. Every company has risks, and we've spotted 5 warning signs for Larimar Therapeutics (of which 2 shouldn't be ignored!) you should know about.

But note: Larimar 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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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.