Whilst it may not be a huge deal, we thought it was good to see that the Palisade Bio, Inc. (NASDAQ:PALI) Independent Director, Robert Baltera, recently bought US$59k worth of stock, for US$1.98 per share. Although the purchase is not a big one, increasing their shareholding by only 8.9%, it can be interpreted as a good sign.

The Last 12 Months Of Insider Transactions At Palisade Bio

Notably, that recent purchase by Robert Baltera is the biggest insider purchase of Palisade Bio shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$2.08. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Palisade Bio share holders is that insiders were buying at near the current price.

Palisade Bio insiders may have bought shares in the last year, but they didn't sell any. 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 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).

Insider Ownership Of Palisade Bio

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. Our data isn't picking up on much insider ownership at Palisade Bio, though insiders do hold about US$327k worth of shares. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Palisade Bio Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Palisade Bio stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

Of course Palisade Bio 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.