Palisade Bio's US$26m Market Cap Fall Books Insider Losses
Insiders who bought US$296.7k worth of Palisade Bio, Inc.'s (NASDAQ:PALI) stock at an average buy price of US$1.91 over the last year may be disappointed by the recent 11% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$182.9k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Palisade Bio Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Robert Baltera bought US$102k worth of shares at a price of US$2.05 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.18). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Palisade Bio insiders bought shares during the last year, they didn't sell. 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!
Check out our latest analysis for Palisade Bio
Palisade Bio is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Palisade Bio Insiders Bought Stock Recently
We saw some Palisade Bio insider buying shares in the last three months. Independent Chairman of the Board Donald Williams shelled out US$29k for shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
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. Our data suggests Palisade Bio insiders own 2.3% of the company, worth about US$4.8m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Palisade Bio Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Palisade Bio stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Palisade Bio. Our analysis shows 5 warning signs for Palisade Bio (3 don't sit too well with us!) and we strongly recommend you look at them before investing.
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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