Sol-Gel Technologies Insiders Up US$2.8m On US$867.1k Investment

Sol-Gel Technologies Ltd. (NASDAQ:SLGL) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 14% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of US$867.1k is now worth US$3.64m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Sol-Gel Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Chairman Moshe Arkin bought US$769k worth of shares at a price of US$7.51 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$30.63. 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.

Moshe Arkin bought a total of 118.73k shares over the year at an average price of US$7.30. 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!

View our latest analysis for Sol-Gel Technologies

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).

Insider Ownership Of Sol-Gel Technologies

For a common shareholder, it is worth checking how many shares are held by company 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. Sol-Gel Technologies insiders own 70% of the company, currently worth about US$60m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Sol-Gel Technologies Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Sol-Gel Technologies insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sol-Gel Technologies. When we did our research, we found 4 warning signs for Sol-Gel Technologies (2 are potentially serious!) that we believe deserve your full attention.

But note: Sol-Gel Technologies 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.