DMAC

DiaMedica($DMAC): $25M Continuous Insider Buying Signals Stroke Treatment Jackpot Expectations

12/08/2025 22:34

The actions of DiaMedica Therapeutics($DMAC) major shareholders are drawing attention from biotech investors. Over the past year and a half, two key major shareholders have invested over $25 million in share purchases, demonstrating through their actions their confidence in this clinical-stage stroke treatment developer. DiaMedica is a clinical-stage biopharmaceutical company headquartered in Minneapolis, Minnesota, focusing on developing treatments for severe ischemic and inflammatory diseases. The company's lead pipeline candidate, DM199, is a recombinant human tissue kallikrein-1 protein for acute ischemic stroke treatment, currently undergoing Phase 2/3 clinical trials. Additionally, Phase 2 trials for preeclampsia, cardio-renal disease, and fetal growth restriction are being conducted simultaneously, showing potential for expansion into various indications. Most notable is the persistent buying pattern of two major shareholders, Jan Stahlberg and Thomas Von Koch. Stahlberg holds shares through his owned entity Trill AB, while Von Koch holds through TomEnterprise Private AB, and both have consistently increased their stakes from June 2024 through November 2025. Particularly noteworthy is that their purchases didn't stop even during stock price appreciation phases. When the stock was around $3.50 in July 2025, they invested $15.4 million, and in November, even with stock prices in the $6.50-$8.00 range, they added another $6.7 million in purchases. There appears to be solid reasoning behind these insiders' confidence. The company holds $55.3 million in cash as of Q3 2025, securing operating funds through the second half of 2027. The debt-to-equity ratio is only 0.51%, indicating high financial stability. Most importantly, the clinical advancement of core pipeline DM199 is at an anticipated inflection point. Market evaluation is also positive. Analysts unanimously provide 'buy' recommendations, with price targets ranging from $12 to $25. This suggests upside potential of at least 40% to a maximum of 180% from current price levels. Cantor Fitzgerald showed particularly strong confidence by providing an 'Overweight' rating with a $25 price target in November. Stock price trends also support the insiders' judgment. Starting from $2.95 in June 2024, the stock showed steady upward momentum, rising to $7.28 by September 2025, recording over 146% gains. With 61% year-to-date and 62% one-year returns, it significantly outperformed the S&P 500. Indicators investors should watch carefully are clear. DM199 clinical trial result announcements will be the most important inflection point, and any additional partnerships or licensing agreement executions will significantly impact the stock price. Cash burn rate, additional funding needs, and competitive treatment development status also require continuous monitoring. However, inherent risks of clinical-stage biotech investments still exist. There is currently no revenue, and clinical trial failures could lead to sharp stock price declines. High volatility (beta 1.30) due to small-cap characteristics is also a factor to consider. Nevertheless, the major shareholders' persistent and large-scale purchases carry meaning beyond simple financial investment. The fact that those closest to internal company information continue increasing their stakes even during stock price appreciation phases can be interpreted as strong confidence in DM199's future clinical success and commercialization. Particularly considering the enormous size of the stroke treatment market, the rewards upon success appear worth the current risks.