Independent Chairman of the Board of Palvella Therapeutics George Jenkins Buys 1.4% More Shares

Even if it's not a huge purchase, we think it was good to see that George Jenkins, the Independent Chairman of the Board of Palvella Therapeutics, Inc. (NASDAQ:PVLA) recently shelled out US$50k to buy stock, at US$20.13 per share. Although the purchase is not a big one, increasing their shareholding by only 1.4%, it can be interpreted as a good sign.

We've discovered 3 warning signs about Palvella Therapeutics. View them for free.

The Last 12 Months Of Insider Transactions At Palvella Therapeutics

Notably, that recent purchase by Independent Chairman of the Board George Jenkins was not the only time they bought Palvella Therapeutics shares this year. Earlier in the year, they paid US$12.93 per share in a US$52k purchase. We do like to see buying, but this purchase was made at well below the current price of US$21.76. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

George Jenkins bought 6.50k shares over the last 12 months at an average price of US$15.70. 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!

See our latest analysis for Palvella Therapeutics

Palvella Therapeutics 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 18% of Palvella Therapeutics shares, worth about US$43m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Palvella Therapeutics Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Palvella Therapeutics insiders are well aligned, and that they may think the share price is too low. 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. To that end, you should learn about the 3 warning signs we've spotted with Palvella Therapeutics (including 1 which is a bit concerning).

Of course Palvella Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.