Founder & Independent Chairman of Rapport Therapeutics Steven Paul Buys 6.9% More Shares

Rapport Therapeutics, Inc. (NASDAQ:RAPP) shareholders (or potential shareholders) will be happy to see that the Founder & Independent Chairman, Steven Paul, recently bought a whopping US$974k worth of stock, at a price of US$27.28. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 6.9%.

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The Last 12 Months Of Insider Transactions At Rapport Therapeutics

Notably, that recent purchase by Steven Paul is the biggest insider purchase of Rapport Therapeutics shares that we've seen in the last year. That implies that an insider found the current price of US$27.54 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Rapport Therapeutics share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid US$1.7m for 61.69k shares. But insiders sold 11.42k shares worth US$341k. Overall, Rapport Therapeutics insiders were net buyers during the last year. 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!

See our latest analysis for Rapport Therapeutics

Rapport Therapeutics 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.

Does Rapport Therapeutics Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.2% of Rapport Therapeutics shares, worth about US$51m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Rapport Therapeutics Tell Us?

It's certainly positive to see the recent insider purchases. 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. Given that insiders also own a fair bit of Rapport Therapeutics we think they are probably pretty confident of a bright future. 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. When we did our research, we found 2 warning signs for Rapport Therapeutics (1 doesn't sit too well with us!) that we believe deserve your full attention.

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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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