Investors who take an interest in Seelos Therapeutics, Inc. (NASDAQ:SEEL) should definitely note that the Chief Financial Officer, Michael Golembiewski, recently paid US$1.21 per share to buy US$100k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 2,406%.

Check out our latest analysis for Seelos Therapeutics

The Last 12 Months Of Insider Transactions At Seelos Therapeutics

Notably, that recent purchase by Michael Golembiewski is the biggest insider purchase of Seelos Therapeutics shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.38. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Seelos Therapeutics insiders were buying shares, but not selling. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Seelos Therapeutics Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$158k worth of Seelos Therapeutics stock, about 1.6% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Seelos Therapeutics Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Seelos Therapeutics insiders are expecting a bright future. 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. To help with this, we've discovered 7 warning signs (4 are concerning!) that you ought to be aware of before buying any shares in Seelos Therapeutics.

Of course Seelos Therapeutics 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.

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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.