Insiders who acquired $827,000 of of Benitec Biopharma Inc. (NASDAQ:BNTC) at an average price of US$3.96 over the past 12 months might be dismayed by the recent 11% price drop. Insiders invest in the hope that their money will increase in value over time. However, following recent losses, their initial investment is now only worth US$209,000, which is not what they expected.
Although we would never suggest that investors base their decisions solely on what a company’s directors have done, logic dictates that you pay attention to whether insiders are buying or selling shares.
See our latest analysis for Benitec Biopharma
Benitec Biopharma insider trading over the past year
In the past twelve months, the largest single insider purchase was when insider Steven Oliveira bought US$827,000 worth of stock at US$4.25 per share. This means that an insider was happy to buy shares above the current price of US$1.00. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. For us, it is very important to consider the price that insiders pay for the shares. Generally, we are more positive about a stock when an insider has bought the stock at prices above the current price, as this suggests that they view the stock as good value, even at a higher price. raised. Steven Oliveira was the only individual insider to buy shares in the last twelve months.
You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!
Benitec Biopharma isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.
Insider Ownership of Benitec Biopharma
Many investors like to check how much a company is owned by insiders. High insider participation often makes company management more concerned with the interests of shareholders. From what we can see in our data, insiders only own about US$10,000 worth of Benitec Biopharma stock. However, insiders may have an indirect interest through a more complex structure. It’s always possible that we’re missing something, but based on our data, it appears that insider ownership is minimal.
So what do Benitec Biopharma’s insider trading indicate?
There have been no insider trades in the last three months – that’s not saying much. But insiders have shown more appetite for the stock over the past year. The transactions are good but it would be more encouraging if Benitec Biopharma insiders bought more shares of the company. In addition to knowing the insider trading taking place, it is beneficial to identify the risks that Benitec Biopharma faces. To do this, you need to find out about the 6 warning signs we spotted some with Benitec Biopharma (including 4 essential ones).
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.