Even with Vallon Pharmaceuticals, Inc. (NASDAQ:VLON) stock down 13% this week, insiders who bought recently netted around US$20k

·2 min read

Vallon Pharmaceuticals, Inc. (NASDAQ:VLON) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 13% decline in the stock price. After accounting for the recent loss, the US$105k worth of shares they purchased is now worth US$124k, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Vallon Pharmaceuticals

The Last 12 Months Of Insider Transactions At Vallon Pharmaceuticals

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Joseph Payne for US$72k worth of shares, at about US$4.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$5.03. 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.

In the last twelve months Vallon Pharmaceuticals insiders were buying shares, but not selling. 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!

insider-trading-volume
insider-trading-volume

Vallon Pharmaceuticals 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 Vallon Pharmaceuticals

Many investors like to check how much of a company is owned by 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. Vallon Pharmaceuticals insiders own about US$6.3m worth of shares. That equates to 18% of the company. 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 Does This Data Suggest About Vallon Pharmaceuticals Insiders?

It doesn't really mean much that no insider has traded Vallon Pharmaceuticals shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Vallon Pharmaceuticals and we see no evidence to suggest they are worried about the 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. To that end, you should learn about the 6 warning signs we've spotted with Vallon Pharmaceuticals (including 3 which shouldn't be ignored).

But note: Vallon Pharmaceuticals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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