Insider Buyers Lose Additional US$46k As Nuvectis Pharma Dips To US$115m

Insiders who acquired US$142.2k worth of Nuvectis Pharma, Inc.'s (NASDAQ:NVCT) stock at an average price of US$9.18 in the past 12 months may be dismayed by the recent 11% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$95.7k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Nuvectis Pharma

The Last 12 Months Of Insider Transactions At Nuvectis Pharma

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Ron Bentsur bought US$51k worth of shares at a price of US$10.29 per share. That means that even when the share price was higher than US$6.18 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Nuvectis Pharma insiders bought shares during the last year, they didn't sell. Their average price was about US$9.18. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Does Nuvectis Pharma Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Nuvectis Pharma insiders own 64% of the company, worth about US$74m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Nuvectis Pharma Tell Us?

It doesn't really mean much that no insider has traded Nuvectis Pharma shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Nuvectis Pharma insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nuvectis Pharma. Our analysis shows 3 warning signs for Nuvectis Pharma (1 is significant!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.