Insider Traders Lose US$65k As Quoin Pharmaceuticals Drops

Insiders who acquired US$128.6k worth of Quoin Pharmaceuticals, Ltd.'s (NASDAQ:QNRX) stock at an average price of US$8.49 in the past 12 months may be dismayed by the recent 11% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$63.8k, which is not great.

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.

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Quoin Pharmaceuticals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Dennis Langer bought US$129k worth of shares at a price of US$8.49 per share. That means that even when the share price was higher than US$4.21 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Dennis Langer was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Quoin Pharmaceuticals

Quoin Pharmaceuticals 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 Quoin Pharmaceuticals

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. From looking at our data, insiders own US$249k worth of Quoin Pharmaceuticals stock, about 2.8% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Quoin Pharmaceuticals Tell Us?

The fact that there have been no Quoin Pharmaceuticals insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Quoin Pharmaceuticals stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Quoin Pharmaceuticals. To help with this, we've discovered 6 warning signs (4 are a bit concerning!) that you ought to be aware of before buying any shares in Quoin Pharmaceuticals.

Of course Quoin Pharmaceuticals may not be the best stock to buy. So you may wish to see this free collection of high quality 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.