Insider Buyers Lose Additional US$53k As Neumora Therapeutics Dips To US$1.4b

Insiders who acquired US$189.4k worth of Neumora Therapeutics, Inc.'s (NASDAQ:NMRA) stock at an average price of US$12.62 in the past 12 months may be dismayed by the recent 14% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$135.9k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Neumora Therapeutics

Neumora Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Henry Gosebruch for US$189k worth of shares, at about US$12.62 per share. That means that an insider was happy to buy shares at above the current price of US$9.06. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Henry Gosebruch was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Neumora Therapeutics 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.

Insider Ownership Of Neumora Therapeutics

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Neumora Therapeutics insiders own 5.9% of the company, worth about US$85m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Neumora Therapeutics Insiders?

It doesn't really mean much that no insider has traded Neumora Therapeutics shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Neumora Therapeutics and their transactions don't cause us concern. 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 4 warning signs (2 are significant!) that you ought to be aware of before buying any shares in Neumora Therapeutics.

Of course Neumora 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.

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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.