In the last year, multiple insiders have substantially increased their holdings of Greenwich LifeSciences, Inc. (NASDAQ:GLSI) stock, indicating that insiders' optimism about the company's prospects has increased.

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.

Check out our latest analysis for Greenwich LifeSciences

The Last 12 Months Of Insider Transactions At Greenwich LifeSciences

Over the last year, we can see that the biggest insider purchase was by CEO, CFO & Director Snehal Patel for US$2.5m worth of shares, at about US$14.30 per share. That means that even when the share price was higher than US$13.58 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Greenwich LifeSciences insiders bought shares during the last year, they didn't sell. 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!

Greenwich LifeSciences is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Greenwich LifeSciences Insiders Bought Stock Recently

Over the last quarter, Greenwich LifeSciences insiders have spent a meaningful amount on shares. In total, insiders bought US$2.7m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Does Greenwich LifeSciences Boast High Insider Ownership?

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. Greenwich LifeSciences insiders own 55% of the company, currently worth about US$94m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Greenwich LifeSciences Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. 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. When combined with notable insider ownership, these factors suggest Greenwich LifeSciences insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Greenwich LifeSciences. For instance, we've identified 5 warning signs for Greenwich LifeSciences (2 make us uncomfortable) you should be aware of.

Of course Greenwich LifeSciences 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.