Yahoo Finance Bullish BriaCell Therapeutics Corp. (TSE:BCT) insiders were rewarded last week as their US$12m investment inflated to US$17m
Last week, BriaCell Therapeutics Corp. (TSE:BCT) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 21% last week, resulting in a CA$28m increase in the company's market worth. Put another way, the original US$12m acquisition is now worth US$17m.
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.
Check out our latest analysis for BriaCell Therapeutics
The Last 12 Months Of Insider Transactions At BriaCell Therapeutics
Notably, that recent purchase by Director Marc Lustig was not the only time they bought BriaCell Therapeutics shares this year. They previously made an even bigger purchase of CA$11m worth of shares at a price of CA$8.48 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$9.95. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months BriaCell Therapeutics insiders were buying shares, but not selling. Their average price was about CA$6.82. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at BriaCell Therapeutics Have Bought Stock Recently
It's good to see that BriaCell Therapeutics insiders have made notable investments in the company's shares. Director Marc Lustig spent CA$451k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Insider Ownership of BriaCell Therapeutics
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. We usually like to see fairly high levels of insider ownership. BriaCell Therapeutics insiders own about CA$19m worth of shares. That equates to 12% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About BriaCell Therapeutics Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of BriaCell Therapeutics we think they are probably pretty confident of a bright future. 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. Every company has risks, and we've spotted 5 warning signs for BriaCell Therapeutics (of which 3 can't be ignored!) 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.
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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.
