Insiders Give Up US$71k As 60 Degrees Pharmaceuticals Stock Drops To US$0.55

The recent price decline of 24% in 60 Degrees Pharmaceuticals, Inc.'s (NASDAQ:SXTP) stock may have disappointed insiders who bought US$126.0k worth of shares at an average price of US$1.27 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$54.8k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for 60 Degrees Pharmaceuticals

60 Degrees Pharmaceuticals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman Geoffrey Dow bought US$90k worth of shares at a price of US$1.27 per share. That means that an insider was happy to buy shares at above the current price of US$0.55. 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. 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.

In the last twelve months 60 Degrees Pharmaceuticals insiders were buying shares, but not selling. 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!

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).

60 Degrees Pharmaceuticals Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at 60 Degrees Pharmaceuticals. In total, insiders bought US$118k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does 60 Degrees Pharmaceuticals 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. Our data suggests 60 Degrees Pharmaceuticals insiders own 3.6% of the company, worth about US$145k. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About 60 Degrees Pharmaceuticals Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on 60 Degrees Pharmaceuticals stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 60 Degrees Pharmaceuticals. At Simply Wall St, we've found that 60 Degrees Pharmaceuticals has 6 warning signs (5 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.