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Praxis Precision Medicines, Inc. (NASDAQ:PRAX) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 11% decline in the stock price. Even after accounting for the recent loss, the US$145.1k worth of stock purchased by them is now worth US$207.4k or in other words, their investment continues to give good returns.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Praxis Precision Medicines
The Last 12 Months Of Insider Transactions At Praxis Precision Medicines
The insider Marcio De'Souza made the biggest insider purchase in the last 12 months. That single transaction was for US$60k worth of shares at a price of US$0.86 each. Even though the purchase was made at a significantly lower price than the recent price (US$1.36), 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 Praxis Precision Medicines insiders were buying shares, but not selling. Their average price was about US$0.95. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Praxis Precision Medicines Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Praxis Precision Medicines. Independent Director Jill DeSimone bought US$25k worth of shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does Praxis Precision Medicines Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Praxis Precision Medicines insiders have about 0.6% of the stock, worth approximately US$1.0m. We prefer to see high levels of insider ownership.