Yahoo Finance The Independent Director of NRx Pharmaceuticals, Inc. (NASDAQ:NRXP), Chaim Hurvitz, Just Bought 30% More Shares
Those following along with NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) will no doubt be intrigued by the recent purchase of shares by Chaim Hurvitz, Independent Director of the company, who spent a stonking US$515k on stock at an average price of US$1.03. Not only is that a big swing, but it increased their holding size by 30%, which is definitely great to see.
View our latest analysis for NRx Pharmaceuticals
NRx Pharmaceuticals Insider Transactions Over The Last Year
In fact, the recent purchase by Chaim Hurvitz was the biggest purchase of NRx Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.09). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
NRx Pharmaceuticals insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$0.95. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does NRx Pharmaceuticals Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. NRx Pharmaceuticals insiders own about US$20m worth of shares. That equates to 27% 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 NRx Pharmaceuticals Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of NRx Pharmaceuticals we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with NRx Pharmaceuticals (including 1 which is a bit concerning).
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.
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