Some of the losses seen by insiders who purchased US$184.5k worth of EyePoint Pharmaceuticals, Inc. (NASDAQ:EYPT) shares over the past year were recovered after the stock increased by 12% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$32k.

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.

See our latest analysis for EyePoint Pharmaceuticals

EyePoint Pharmaceuticals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Karen Zaderej bought US$100k worth of shares at a price of US$7.98 per share. That means that an insider was happy to buy shares at above the current price of US$6.58. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid US$185k for 23.24k shares. But they sold 5.55k shares for US$61k. Overall, EyePoint Pharmaceuticals insiders were net buyers during the last year. 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!

EyePoint Pharmaceuticals 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.

Does EyePoint Pharmaceuticals Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data suggests EyePoint Pharmaceuticals insiders own 0.9% of the company, worth about US$4.0m. We consider this fairly low insider ownership.

So What Does This Data Suggest About EyePoint Pharmaceuticals Insiders?

It doesn't really mean much that no insider has traded EyePoint Pharmaceuticals shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if EyePoint Pharmaceuticals insiders bought more shares in 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. Be aware that EyePoint Pharmaceuticals is showing 3 warning signs in our investment analysis, and 1 of those is concerning...

But note: EyePoint Pharmaceuticals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.