Investors who take an interest in Heron Therapeutics, Inc. (NASDAQ:HRTX) should definitely note that the CEO & Director, Craig Collard, recently paid US$0.92 per share to buy US$138k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 411%, potentially signalling some real optimism.
Heron Therapeutics Insider Transactions Over The Last Year
Notably, that recent purchase by Craig Collard is the biggest insider purchase of Heron Therapeutics shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$1.09), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Heron Therapeutics 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
Heron Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Heron Therapeutics
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Heron Therapeutics insiders own 0.7% of the company, worth about US$1.1m. We consider this fairly low insider ownership.
So What Do The Heron Therapeutics Insider Transactions Indicate?
The recent insider purchases are heartening. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Heron Therapeutics insiders are expecting a bright future. While we like knowing 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. When we did our research, we found 4 warning signs for Heron Therapeutics (2 can't be ignored!) that we believe deserve your full attention.
Of course Heron Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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.