With Rezolute Up 14%, Insider Buyers Count Their Returns
Rezolute, Inc. (NASDAQ:RZLT) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a US$60m rise in the company's market capitalisation, translating to a gain of 161% on their initial investment. As a result, their original purchase of US$235.7k worth of stock is now worth US$616.0k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Rezolute Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chief Financial & Business Officer Daron Evans for US$80k worth of shares, at about US$1.79 per share. Even though the purchase was made at a significantly lower price than the recent price (US$4.64), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Rezolute insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Rezolute
Rezolute is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Rezolute
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$3.4m worth of Rezolute stock, about 0.7% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Rezolute Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Rezolute insiders bought more shares in 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. For instance, we've identified 2 warning signs for Rezolute (1 is significant) you should be aware of.
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.