In the last year, multiple insiders have substantially increased their holdings of Larimar Therapeutics, Inc. (NASDAQ:LRMR) stock, indicating that insiders’ optimism about the company’s prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Larimar Therapeutics
Larimar Therapeutics Insider Transactions Over The Last Year
The Independent Director Thomas Hamilton made the biggest insider purchase in the last 12 months. That single transaction was for US$1m worth of shares at a price of US$3.15 each. Even though the purchase was made at a significantly lower price than the recent price (US$6.30), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
In the last twelve months Larimar Therapeutics 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!
Larimar Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Larimar Therapeutics Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$3.8m worth of Larimar Therapeutics stock, about 1.4% of the company. We consider this fairly low insider ownership.
So What Do The Larimar Therapeutics Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Larimar Therapeutics shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Larimar Therapeutics insiders are doubting the company. 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 5 warning signs (3 can’t be ignored!) that you ought to be aware of before buying any shares in Larimar Therapeutics.
But note: Larimar Therapeutics 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, but not derivative transactions.
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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.
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