Should You Take Comfort From Insider Transactions At Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS)?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.

Check out our latest analysis for Pieris Pharmaceuticals

Pieris Pharmaceuticals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman James Geraghty bought US$58k worth of shares at a price of US$5.75 per share. That means that an insider was happy to buy shares at above the current price. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We generally consider it a positive if insiders have been buying on market, even above the current price.

Happily, we note that in the last year insiders bought 15.00k shares for a total of US$83k. In total, Pieris Pharmaceuticals insiders bought more than they sold over the last year. The average buy price was around US$5.54. These transactions suggest that insiders have considered the current price of US$3.06 attractive. You can see the insider transactions over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqCM:PIRS Insider Trading December 14th 18
NasdaqCM:PIRS Insider Trading December 14th 18

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

Pieris Pharmaceuticals Insiders Bought Stock Recently

There was some insider buying at Pieris Pharmaceuticals over the last quarter. Director Christopher Kiritsy purchased US$26k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Insider Ownership of Pieris Pharmaceuticals

Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Pieris Pharmaceuticals insiders own 0.2% of the company, currently worth about US$372k based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Pieris Pharmaceuticals Insiders?

Insider purchases have outweighed sales, in the last three months. But the difference isn’t much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it’d be more encouraging if Pieris Pharmaceuticals insiders bought more shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Pieris Pharmaceuticals.

But note: Pieris 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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.