Edesa Biotech, Inc. (NASDAQ:EDSA) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a US$2.1m rise in the company's market capitalisation, translating to a gain of 23% on their initial investment. As a result, their original purchase of US$120.0k worth of stock is now worth US$148.1k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Edesa Biotech

In the last twelve months, the biggest single purchase by an insider was when Independent Director Patrick Marshall bought US$80k worth of shares at a price of US$1.92 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.37. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Edesa Biotech insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Edesa Biotech is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Edesa Biotech

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.2% of Edesa Biotech shares, worth about US$1.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Edesa Biotech Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Edesa Biotech shares in the last quarter. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Edesa Biotech insiders are doubting the company. 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 Edesa Biotech is showing 6 warning signs in our investment analysis, and 4 of those are potentially serious...

Of course Edesa Biotech 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.