Insiders Who Purchased US$663.4k Of Relmada Therapeutics Stock May Not Have Expected 14% Tumble

The recent price decline of 14% in Relmada Therapeutics, Inc.'s (NASDAQ:RLMD) stock may have disappointed insiders who bought US$663.4k worth of shares at an average price of US$3.86 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$415.4k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Relmada Therapeutics

The Last 12 Months Of Insider Transactions At Relmada Therapeutics

Over the last year, we can see that the biggest insider purchase was by CEO & Director Sergio Traversa for US$387k worth of shares, at about US$4.00 per share. That means that an insider was happy to buy shares at above the current price of US$2.42. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Relmada Therapeutics insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Relmada Therapeutics insiders own about US$6.2m worth of shares (which is 8.0% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Relmada Therapeutics Insiders?

The fact that there have been no Relmada Therapeutics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Relmada Therapeutics insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Relmada Therapeutics. To help with this, we've discovered 4 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Relmada Therapeutics.

Of course Relmada 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.