Rani Therapeutics Holdings Decline Means Insider Profits Down To US$81k

Insiders who bought Rani Therapeutics Holdings, Inc. (NASDAQ:RANI) in the last 12 months may probably not pay attention to the stock's recent 10% drop. Reason being, despite the recent loss, insiders original purchase value of US$190.0k is now worth US$271.2k.

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.

Check out our latest analysis for Rani Therapeutics Holdings

Rani Therapeutics Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Jean-Luc Butel bought US$102k worth of shares at a price of US$2.03 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.98. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Rani Therapeutics Holdings insiders bought shares during the last year, they didn't sell. 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!

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

Insiders At Rani Therapeutics Holdings Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Rani Therapeutics Holdings. Not only was there no selling that we can see, but they collectively bought US$190k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Rani Therapeutics Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$1.3m worth of Rani Therapeutics Holdings stock, about 0.9% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

So What Do The Rani Therapeutics Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Rani Therapeutics Holdings stock. 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 4 warning signs for Rani Therapeutics Holdings (2 are potentially serious) you should be aware of.

But note: Rani Therapeutics Holdings 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.