Whilst it may not be a huge deal, we thought it was good to see that the NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) Co-Founder, Jonathan Javitt, recently bought US$64k worth of stock, for US$0.32 per share. Although the purchase is not a big one, increasing their shareholding by only 1.4%, it can be interpreted as a good sign.
NRx Pharmaceuticals Insider Transactions Over The Last Year
The Independent Director Chaim Hurvitz made the biggest insider purchase in the last 12 months. That single transaction was for US$515k worth of shares at a price of US$1.10 each. That means that an insider was happy to buy shares at above the current price of US$0.34. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$737k for 908.09k shares. On the other hand they divested 400.00k shares, for US$400k. In total, NRx Pharmaceuticals insiders bought more than they sold over the last year. The average buy price was around US$0.81. This is nice to see since it implies that insiders might see value around current prices. 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!
NRx Pharmaceuticals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. It appears that NRx Pharmaceuticals insiders own 23% of the company, worth about US$6.2m. 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 NRx Pharmaceuticals Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. 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. Insiders likely see value in NRx Pharmaceuticals shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, NRx Pharmaceuticals has 7 warning signs (and 5 which don't sit too well with us) we think 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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.