Even with Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) stock down 7.7% this week, insiders who bought recently netted around US$70k
Insiders who bought Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) stock lover the last 12 months are probably not as affected by last week’s 7.7% loss. Reason being, despite the recent loss, insiders original purchase value of US$382k is now worth US$451k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Rocket Pharmaceuticals
Rocket Pharmaceuticals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Director Gaurav Shah for US$382k worth of shares, at about US$17.34 per share. Even though the purchase was made at a significantly lower price than the recent price (US$20.52), 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.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Rocket Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Rocket Pharmaceuticals Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Rocket Pharmaceuticals insiders own 2.0% of the company, worth about US$31m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Rocket Pharmaceuticals Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Rocket Pharmaceuticals and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rocket Pharmaceuticals. To help with this, we've discovered 3 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Rocket Pharmaceuticals.
Of course Rocket Pharmaceuticals 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, but not derivative transactions.
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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.
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