With Relmada Therapeutics Up 18%, Insider Buyers Count Their Returns

Relmada Therapeutics, Inc. (NASDAQ:RLMD) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 18%, resulting in a US$16m rise in the company's market capitalisation, translating to a gain of 56% on their initial investment. Put another way, the original US$147.6k acquisition is now worth US$230.3k.

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.

See our latest analysis for Relmada Therapeutics

Relmada Therapeutics Insider Transactions Over The Last Year

The CEO & Director Sergio Traversa made the biggest insider purchase in the last 12 months. That single transaction was for US$116k worth of shares at a price of US$2.10 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.53. 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.

Relmada Therapeutics insiders may have bought shares in the last year, but they didn't sell any. 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!

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

Does Relmada Therapeutics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Relmada Therapeutics insiders own about US$9.1m worth of shares (which is 8.6% 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. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Relmada Therapeutics stock. 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 help with this, we've discovered 4 warning signs (2 don't sit too well with us!) 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.