The recent price decline of 15% in NeOnc Technologies Holdings, Inc.'s (NASDAQ:NTHI) stock may have disappointed insiders who bought US$615.6k worth of shares at an average price of US$5.51 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$411.4k, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At NeOnc Technologies Holdings

In the last twelve months, the biggest single purchase by an insider was when President Amir Heshmatpour bought US$185k worth of shares at a price of US$6.51 per share. That means that an insider was happy to buy shares at above the current price of US$3.68. 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.

In the last twelve months NeOnc Technologies Holdings insiders were buying shares, but not selling. The average buy price was around US$5.51. 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

NeOnc Technologies Holdings Insiders Bought Stock Recently

Over the last quarter, NeOnc Technologies Holdings insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$138k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of NeOnc Technologies Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. NeOnc Technologies Holdings insiders own 55% of the company, currently worth about US$62m based on the recent share price. 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 Does This Data Suggest About NeOnc Technologies Holdings Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about NeOnc Technologies Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NeOnc Technologies Holdings.

Of course NeOnc Technologies Holdings 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.

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.