Even if it's not a huge purchase, we think it was good to see that Snehal Patel, the CEO, CFO & Director of Greenwich LifeSciences, Inc. (NASDAQ:GLSI) recently shelled out US$51k to buy stock, at US$10.17 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Greenwich LifeSciences

Greenwich LifeSciences Insider Transactions Over The Last Year

In fact, the recent purchase by CEO, CFO & Director Snehal Patel was not their only acquisition of Greenwich LifeSciences shares this year. They previously made an even bigger purchase of US$78k worth of shares at a price of US$11.10 per share. That means that even when the share price was higher than US$10.98 (the recent price), an insider wanted to purchase shares. 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.

Greenwich LifeSciences insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Greenwich LifeSciences 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 Greenwich LifeSciences

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Greenwich LifeSciences insiders own about US$73m worth of shares (which is 54% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Greenwich LifeSciences Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Greenwich LifeSciences. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Greenwich LifeSciences you should know about.

Of course Greenwich LifeSciences 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 of direct interests only, but not derivative transactions or indirect interests.

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