Investors who take an interest in Ovid Therapeutics Inc. (NASDAQ:OVID) should definitely note that the Chairman & CEO, Jeremy Levin, recently paid US$2.50 per share to buy US$150k worth of the stock. Although the purchase only increased their holding by 1.3%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Ovid Therapeutics
In fact, the recent purchase by Jeremy Levin was the biggest purchase of Ovid Therapeutics shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$2.29 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Ovid Therapeutics insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$2.21. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. The chart below shows insider transactions (by 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Ovid Therapeutics insiders own about US$25m worth of shares. That equates to 22% of the company. 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 Does This Data Suggest About Ovid Therapeutics Insiders?
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. When combined with notable insider ownership, these factors suggest Ovid Therapeutics insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Ovid Therapeutics, you should check out this free report on analyst forecasts for the company.
Of course Ovid 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.