We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Tonix Pharmaceuticals Holding
In the last twelve months, the biggest single purchase by an insider was when Ernest Mario bought US$74k worth of shares at a price of US$44.80 per share. So it’s clear an insider wanted to buy, even at a higher price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
Happily, we note that in the last year insiders bought 4.11k shares for a total of US$165k. In the last twelve months there was more buying than selling by Tonix Pharmaceuticals Holding insiders. The average buy price was around US$40.14. These transactions suggest that insiders have considered the current price of US$2.16 attractive. You can see the insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Tonix Pharmaceuticals Holding Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Tonix Pharmaceuticals Holding insiders own about US$274k worth of shares (which is 8.3% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Tonix Pharmaceuticals Holding Insider Transactions Indicate?
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. The transactions are fine but it’d be more encouraging if Tonix Pharmaceuticals Holding insiders bought more shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Tonix Pharmaceuticals Holding.
But note: Tonix Pharmaceuticals Holding 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.