When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Radiopharm Theranostics Limited's (ASX:RAD) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Radiopharm Theranostics

The Last 12 Months Of Insider Transactions At Radiopharm Theranostics

The MD, CEO & Director Riccardo Canevari made the biggest insider purchase in the last 12 months. That single transaction was for AU$241k worth of shares at a price of AU$0.031 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.026). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 19.43m shares for AU$685k. But insiders sold 1.50m shares worth AU$43k. In the last twelve months there was more buying than selling by Radiopharm Theranostics insiders. They paid about AU$0.035 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

Radiopharm Theranostics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Radiopharm Theranostics Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Radiopharm Theranostics. Insiders spent AU$275k on shares. But Founder & Executive Chairman Paul Hopper sold shares worth AU$43k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership Of Radiopharm Theranostics

For a common shareholder, it is worth checking how many shares are held by company 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. From our data, it seems that Radiopharm Theranostics insiders own 11% of the company, worth about AU$6.8m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Radiopharm Theranostics Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Radiopharm Theranostics stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Radiopharm Theranostics. Our analysis shows 5 warning signs for Radiopharm Theranostics (2 are a bit unpleasant!) and we strongly recommend you look at these before investing.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.