Some ADMA Biologics, Inc. (NASDAQ:ADMA) shareholders may be a little concerned to see that the Co-Founder, Adam Grossman, recently sold a substantial US$1.1m worth of stock at a price of US$10.72 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.9%.
ADMA Biologics Insider Transactions Over The Last Year
In fact, the recent sale by Adam Grossman was the biggest sale of ADMA Biologics shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$10.63. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Happily, we note that in the last year insiders paid US$580k for 155.00k shares. But insiders sold 561.58k shares worth US$3.1m. Over the last year we saw more insider selling of ADMA Biologics shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
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. 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 ADMA Biologics insiders own 2.0% of the company, worth about US$49m. 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 ADMA Biologics Insiders?
An insider sold ADMA Biologics shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ADMA Biologics. At Simply Wall St, we found 2 warning signs for ADMA Biologics that deserve your attention before buying any shares.
But note: ADMA Biologics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com