Founder of NeOnc Technologies Holdings Thomas Chen Buys 1.0% More Shares

Investors who take an interest in NeOnc Technologies Holdings, Inc. (NASDAQ:NTHI) should definitely note that the Founder, Thomas Chen, recently paid US$3.86 per share to buy US$140k worth of the stock. Although the purchase only increased their holding by 1.0%, it is still a solid purchase in our view.

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The Last 12 Months Of Insider Transactions At NeOnc Technologies Holdings

The President Amir Heshmatpour made the biggest insider purchase in the last 12 months. That single transaction was for US$185k worth of shares at a price of US$6.51 each. That means that even when the share price was higher than US$4.63 (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. We always take careful note of the price insiders pay when purchasing 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.

NeOnc Technologies Holdings insiders may have bought shares in the last year, but they didn’t sell any. The average buy price was around US$5.02. This is nice to see since it implies that insiders might see value around current prices. 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!

See our latest analysis for NeOnc Technologies Holdings

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does NeOnc Technologies Holdings Boast High Insider Ownership?

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. NeOnc Technologies Holdings insiders own about US$79m worth of shares (which is 58% 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.

So What Do The NeOnc Technologies Holdings Insider Transactions Indicate?

It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don’t feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about NeOnc Technologies Holdings. One for the watchlist, at least! While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that NeOnc Technologies Holdings is showing 6 warning signs in our investment analysis, and 4 of those are potentially serious…

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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.