Portage Biotech Insider Buyers See Boost After Market Cap Rose US$9.0m

Portage Biotech Inc. (NASDAQ:PRTG) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 131% resulting in a US$9.0m addition to the company’s market value. Put another way, the original US$2.15m acquisition is now worth US$5.03m.

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.

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Portage Biotech Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Lead Director Gregory Bailey bought US$1.6m worth of shares at a price of US$4.10 per share. Even though the purchase was made at a significantly lower price than the recent price (US$9.60), 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.

Over the last year, we can see that insiders have bought 524.39k shares worth US$2.1m. But they sold 70.00k shares for US$1.2m. Overall, Portage Biotech insiders were net buyers during 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!

View our latest analysis for Portage Biotech

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Portage Biotech Insiders Bought Stock Recently

It's good to see that Portage Biotech insiders have made notable investments in the company's shares. In total, insiders bought US$2.1m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Portage Biotech

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Portage Biotech insiders own 49% of the company, currently worth about US$7.7m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Portage Biotech Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Portage Biotech. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 6 warning signs we've spotted with Portage Biotech (including 5 which make us uncomfortable).

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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.