Insiders Rewarded With US$915k Addition To Investment As Nuvectis Pharma Stock Hits US$185m

Nuvectis Pharma, Inc. (NASDAQ:NVCT) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a US$24m addition to the company’s market value. As a result, the stock they originally bought for US$1.65m is now worth US$2.56m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Nuvectis Pharma

Nuvectis Pharma Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Charles Mosseri-Marlio bought US$1.2m worth of shares at a price of US$5.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.85. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 326.17k shares for US$1.6m. But they sold 2.76k shares for US$22k. In total, Nuvectis Pharma insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Nuvectis Pharma Insiders Bought Stock Recently

It's good to see that Nuvectis Pharma insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$1.4m for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Nuvectis Pharma insiders own 44% of the company, worth about US$82m. 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 Does This Data Suggest About Nuvectis Pharma Insiders?

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. When combined with notable insider ownership, these factors suggest Nuvectis Pharma insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Nuvectis Pharma (2 are significant!) and we strongly recommend you look at these before investing.

Of course Nuvectis Pharma 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.