When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Processa Pharmaceuticals, Inc.'s (NASDAQ:PCSA) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Processa Pharmaceuticals

Processa Pharmaceuticals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Co-Founder David Young bought US$77k worth of shares at a price of US$7.67 per share. That means that an insider was happy to buy shares at above the current price of US$4.35. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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.

Over the last year, we can see that insiders have bought 25.50k shares worth US$164k. But they sold 9.70k shares for US$46k. In total, Processa Pharmaceuticals insiders bought more than they sold over the last year. Their average price was about US$6.42. These transactions suggest that insiders have considered the current price attractive. 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!

Processa 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.

Insiders at Processa Pharmaceuticals Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at Processa Pharmaceuticals. Independent Director Justin Yorke sold US$46k worth of shares in that time. But US$29k was spent on buying, too, . While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership of Processa 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. It appears that Processa Pharmaceuticals insiders own 16% of the company, worth about US$11m. 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 Processa Pharmaceuticals Tell Us?

We note that there's been a little more insider selling than buying, recently. But the difference is small, and thus, not concerning. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Processa Pharmaceuticals and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Processa Pharmaceuticals. Be aware that Processa Pharmaceuticals is showing 5 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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.

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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.