Rezolute Gains 13%, Insider Trades Reap Benefit

Insiders who bought Rezolute, Inc. (NASDAQ:RZLT) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$34m as a result of the stock's 13% gain over the same period. Put another way, the original US$400.0k acquisition is now worth US$1.12m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Rezolute

Rezolute Insider Transactions Over The Last Year

The Chief Financial Officer Daron Evans made the biggest insider purchase in the last 12 months. That single transaction was for US$96k worth of shares at a price of US$1.93 each. We do like to see buying, but this purchase was made at well below the current price of US$5.31. 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.

Rezolute insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Rezolute Insiders Bought Stock Recently

We saw some Rezolute insider buying shares in the last three months. Insiders purchased US$50k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$2.4m worth of Rezolute stock, about 0.8% of the company. We consider this fairly low insider ownership.

So What Do The Rezolute Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Rezolute insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rezolute. At Simply Wall St, we've found that Rezolute has 4 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.