Insiders who purchased ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. After accounting for the recent loss, the US$320.0k worth of shares they purchased is now worth US$979.9k, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for ARS Pharmaceuticals

ARS Pharmaceuticals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chief Legal Officer & Secretary Alexander Fitzpatrick bought US$320k worth of shares at a price of US$3.78 per share. We do like to see buying, but this purchase was made at well below the current price of US$11.36. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

ARS Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does ARS Pharmaceuticals Boast High Insider Ownership?

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. It's great to see that ARS Pharmaceuticals insiders own 20% of the company, worth about US$218m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The ARS Pharmaceuticals Insider Transactions Indicate?

It doesn't really mean much that no insider has traded ARS Pharmaceuticals shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like ARS Pharmaceuticals insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, ARS Pharmaceuticals has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

Of course ARS Pharmaceuticals 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.