Insiders who acquired US$93.4k worth of Danimer Scientific, Inc.'s (NYSE:DNMR) stock at an average price of US$0.93 in the past 12 months may be dismayed by the recent 11% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$51.5k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Danimer Scientific

The Last 12 Months Of Insider Transactions At Danimer Scientific

The Interim Executive Independent Chairman Richard Hendrix made the biggest insider purchase in the last 12 months. That single transaction was for US$93k worth of shares at a price of US$0.94 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.51). 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Richard Hendrix was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Danimer Scientific 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 Danimer Scientific Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Danimer Scientific insiders own 10% of the company, worth about US$6.1m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Danimer Scientific Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Danimer Scientific stock. 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 5 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Danimer Scientific.