ProMIS Neurosciences Insiders Still US$234k Away From Original Investment Value

Insiders who bought US$399.7k worth of ProMIS Neurosciences, Inc. (NASDAQ:PMN) stock in the last year recovered part of their losses as the stock rose by 27% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$234k since the time of purchase.

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 ProMIS Neurosciences

In the last twelve months, the biggest single purchase by an insider was when Lead Independent Director Madge Shafmaster bought US$256k worth of shares at a price of US$1.30 per share. That means that an insider was happy to buy shares at above the current price of US$0.52. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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.

In the last twelve months ProMIS Neurosciences insiders were buying shares, but not selling. 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!

View our latest analysis for ProMIS Neurosciences

ProMIS Neurosciences is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ProMIS Neurosciences insiders own about US$4.0m worth of shares. That equates to 31% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At ProMIS Neurosciences Tell Us?

It doesn't really mean much that no insider has traded ProMIS Neurosciences shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in ProMIS Neurosciences and their transactions don't cause us concern. 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. Every company has risks, and we've spotted 7 warning signs for ProMIS Neurosciences (of which 4 are concerning!) you should know about.

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.