Potential Rhythm Biosciences Limited (ASX:RHY) shareholders may wish to note that the Non-Executive Chairman, Otto Leslie Buttula, recently bought AU$582k worth of stock, paying AU$0.85 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.5%.

See our latest analysis for Rhythm Biosciences

The Last 12 Months Of Insider Transactions At Rhythm Biosciences

In fact, the recent purchase by Otto Leslie Buttula was the biggest purchase of Rhythm Biosciences shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of AU$1.08. 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.

While Rhythm Biosciences 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Rhythm Biosciences is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Rhythm Biosciences Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 appears that Rhythm Biosciences insiders own 40% of the company, worth about AU$88m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Rhythm Biosciences Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give 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 Rhythm Biosciences insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rhythm Biosciences. Every company has risks, and we've spotted 3 warning signs for Rhythm Biosciences (of which 2 make us uncomfortable!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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.

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