When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in NeOnc Technologies Holdings, Inc.'s (NASDAQ:NTHI) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

NeOnc Technologies Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CFO & Director, Keithly Garnett, for US$164k worth of shares, at about US$25.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$9.08. So it is hard to draw any strong conclusion from it. Keithly Garnett was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 23.87k shares worth US$208k. But insiders sold 6.62k shares worth US$164k. In the last twelve months there was more buying than selling by NeOnc Technologies Holdings insiders. They paid about US$8.71 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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 undervalued small cap companies that insiders are buying.

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. 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$105m worth of shares (which is 61% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At NeOnc Technologies Holdings Tell Us?

The fact that there have been no NeOnc Technologies Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like NeOnc Technologies Holdings insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.