Physiomics Reaches UK£2.3m Market Cap Benefiting Insider Stock Buying

Last week, Physiomics Plc (LON:PYC) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 14% last week, resulting in a UK£295k increase in the company's market worth, implying a 11% gain on their initial purchase. As a result, their original purchase of UK£68.7k worth of stock is now worth UK£76.2k.

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.

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Physiomics Insider Transactions Over The Last Year

Notably, that recent purchase by Robert McFadden is the biggest insider purchase of Physiomics shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is UK£0.0052. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Physiomics insiders decided to buy shares at close to current prices.

Physiomics 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. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Physiomics

Physiomics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Physiomics Have Bought Stock Recently

Over the last quarter, Physiomics insiders have spent a meaningful amount on shares. In total, insiders bought UK£69k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Physiomics insiders own 33% of the company, worth about UK£762k. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Physiomics Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Physiomics insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Physiomics. Our analysis shows 5 warning signs for Physiomics (3 are concerning!) and we strongly recommend you look at them before investing.

But note: Physiomics 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 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.