Insider Buyers Lose US$119k As NeOnc Technologies Holdings Sheds US$20m

The recent price decline of 22% in NeOnc Technologies Holdings, Inc.'s (NASDAQ:NTHI) stock may have disappointed insiders who bought US$207.9k worth of shares at an average price of US$8.71 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$88.8k, which is not great.

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

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The Last 12 Months Of Insider Transactions At NeOnc Technologies Holdings

In the last twelve months, the biggest single sale by an insider was when the CFO & Director, Keithly Garnett, sold US$164k worth of shares at a price of US$25.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$3.72. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Keithly Garnett.

In the last twelve months insiders purchased 23.87k shares for US$208k. But insiders sold 6.62k shares worth US$164k. Overall, NeOnc Technologies Holdings insiders were net buyers during the last year. Their average price was about US$8.71. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for NeOnc Technologies Holdings

NeOnc Technologies Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At NeOnc Technologies Holdings Have Bought Stock Recently

It's good to see that NeOnc Technologies Holdings insiders have made notable investments in the company's shares. In total, insiders bought US$208k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. NeOnc Technologies Holdings insiders own about US$33m worth of shares (which is 47% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The NeOnc Technologies Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about NeOnc Technologies Holdings. One for the watchlist, at least! 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. For example, NeOnc Technologies Holdings has 6 warning signs (and 5 which are a bit concerning) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.