Insiders who purchased Rani Therapeutics Holdings, Inc. (NASDAQ:RANI) shares in the past 12 months are unlikely to be deeply impacted by the stock's 13% decline over the past week. Even after accounting for the recent loss, the US$1.26m worth of stock purchased by them is now worth US$2.52m or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

The Last 12 Months Of Insider Transactions At Rani Therapeutics Holdings

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Mir Imran for US$1.3m worth of shares, at about US$0.60 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.21. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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 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 Of Rani Therapeutics Holdings

For a common shareholder, it is worth checking how many shares are held by company 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. Based on our data, Rani Therapeutics Holdings insiders have about 2.5% of the stock, worth approximately US$3.8m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Rani Therapeutics Holdings Tell Us?

It doesn't really mean much that no insider has traded Rani Therapeutics Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Rani Therapeutics Holdings insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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.