Hemogenyx Pharmaceuticals Insider Buyers See Boost After Market Cap Rose UK£8.8m

Last week, Hemogenyx Pharmaceuticals Plc (LON:HEMO) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 40% last week, resulting in a UK£8.8m increase in the company's market worth, implying a 215% gain on their initial purchase. As a result, the stock they originally bought for UK£701.3k is now worth UK£2.21m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Hemogenyx Pharmaceuticals

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Vladislav Sandler bought UK£451k worth of shares at a price of UK£1.80 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£5.76), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Vladislav Sandler bought a total of 383.69k shares over the year at an average price of UK£1.83. 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 Hemogenyx Pharmaceuticals

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Hemogenyx Pharmaceuticals

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 Hemogenyx Pharmaceuticals insiders own 16% of the company, worth about UK£5.0m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Hemogenyx Pharmaceuticals Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Hemogenyx Pharmaceuticals insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 6 warning signs for Hemogenyx Pharmaceuticals you should be aware of, and 5 of them don't sit too well with us.

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.