Yahoo Finance Independent Director of Biohaven John Childs Buys 3.2% More Shares
Those following along with Biohaven Ltd. (NYSE:BHVN) will no doubt be intrigued by the recent purchase of shares by John Childs, Independent Director of the company, who spent a stonking US$8.0m on stock at an average price of US$41.00. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.2%.
See our latest analysis for Biohaven
The Last 12 Months Of Insider Transactions At Biohaven
In fact, the recent purchase by Independent Director John Childs was not their only acquisition of Biohaven shares this year. They previously made an even bigger purchase of US$10.0m worth of shares at a price of US$22.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$38.54. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Biohaven insiders may have bought shares in the last year, but they didn't sell any. They paid about US$26.69 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Biohaven
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Biohaven insiders own 13% of the company, currently worth about US$444m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Biohaven Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Biohaven insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. Be aware that Biohaven is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
