Yahoo Finance ASP Isotopes Gains 35%, Insider Trades Reap Benefit
Last week, ASP Isotopes Inc. (NASDAQ:ASPI) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 35% last week, resulting in a US$19m increase in the company's market worth, implying a 85% gain on their initial purchase. As a result, the stock they originally bought for US$372.3k is now worth US$688.8k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for ASP Isotopes
The Last 12 Months Of Insider Transactions At ASP Isotopes
The Independent Director Joshua Donfeld made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$0.96 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.52. 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.
While ASP Isotopes insiders bought shares during the last year, they didn't sell. The average buy price was around US$0.82. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
ASP Isotopes is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
ASP Isotopes Insiders Bought Stock Recently
It's good to see that ASP Isotopes insiders have made notable investments in the company's shares. In total, insiders bought US$291k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that ASP Isotopes insiders own 31% of the company, worth about US$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The ASP Isotopes Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives 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 ASP Isotopes we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ASP Isotopes. Every company has risks, and we've spotted 5 warning signs for ASP Isotopes (of which 2 don't sit too well with us!) you should know about.
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.
