Insider Buyers Lose Additional US$66k As Praxis Precision Medicines Dips To US$54m \

The recent 21% drop in Praxis Precision Medicines, Inc.'s (NASDAQ:PRAX) stock could come as a blow to insiders who purchased US$240k worth of stock at an average buy price of US$1.20 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$174k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Praxis Precision Medicines

The Last 12 Months Of Insider Transactions At Praxis Precision Medicines

In the last twelve months, the biggest single purchase by an insider was when insider Marcio De'Souza bought US$60k worth of shares at a price of US$0.86 per share. That means that an insider was happy to buy shares at around the current price of US$0.87. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Praxis Precision Medicines share holders is that insiders were buying at near the current price.

In the last twelve months Praxis Precision Medicines insiders were buying shares, but not selling. They paid about US$1.20 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insiders At Praxis Precision Medicines Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Praxis Precision Medicines. In total, insiders bought US$109k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Praxis Precision Medicines insiders have about 1.0% of the stock, worth approximately US$564k. We consider this fairly low insider ownership.

So What Do The Praxis Precision Medicines Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Praxis Precision Medicines insiders are expecting a bright future. While we like knowing 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. For instance, we've identified 6 warning signs for Praxis Precision Medicines (3 are significant) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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