Processa Pharmaceuticals Insiders Still US$40k Away From Original Investment Value

Insiders who bought US$210.6k worth of Processa Pharmaceuticals, Inc. (NASDAQ:PCSA) stock in the last year recovered part of their losses as the stock rose by 19% last week. However, total losses seen by insiders are still US$40k since the time of purchase.

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.

Check out our latest analysis for Processa Pharmaceuticals

Processa Pharmaceuticals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder David Young for US$52k worth of shares, at about US$2.45 per share. Even though the purchase was made at a significantly lower price than the recent price (US$2.79), we still think insider buying is a positive. 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.

Processa Pharmaceuticals insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$3.45. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

Processa Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Processa Pharmaceuticals Have Bought Stock Recently

Over the last quarter, Processa Pharmaceuticals insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$139k worth of shares. That shows some optimism about the company's future.

Insider Ownership Of Processa Pharmaceuticals

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 6.4% of Processa Pharmaceuticals shares, worth about US$507k, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Processa Pharmaceuticals Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Processa Pharmaceuticals insiders are expecting a bright future. 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. When we did our research, we found 5 warning signs for Processa Pharmaceuticals (4 are significant!) that we believe deserve your full attention.

But note: Processa Pharmaceuticals 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.