Bullish Relmada Therapeutics Insiders Loaded Up On US$695.2k Of Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Relmada Therapeutics, Inc.'s (NASDAQ:RLMD) case, it's fantastic news for shareholders.

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 Relmada Therapeutics

The Last 12 Months Of Insider Transactions At Relmada Therapeutics

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Sergio Traversa bought US$387k worth of shares at a price of US$4.00 per share. So it's clear an insider wanted to buy, at around the current price, which is US$4.00. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 Relmada Therapeutics share holders is that insiders were buying at near the current price.

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

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

Relmada Therapeutics Insiders Bought Stock Recently

It's good to see that Relmada Therapeutics insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$663k worth of shares. That shows some optimism about the company's future.

Does Relmada Therapeutics Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Relmada Therapeutics insiders own about US$10m worth of shares. That equates to 8.3% of the company. 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 Do The Relmada Therapeutics Insider Transactions Indicate?

It is good to see recent purchasing. 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 Relmada Therapeutics insiders are well aligned, and that they may think the share price is too low. 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. To help with this, we've discovered 3 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Relmada Therapeutics.

But note: Relmada Therapeutics 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.

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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.