Yahoo Finance Insiders who purchased this year lose CA$180k as Satellos Bioscience Inc. (CVE:MSCL) stock drops to CA$0.37
The recent 12% drop in Satellos Bioscience Inc.'s (CVE:MSCL) stock could come as a blow to insiders who purchased CA$260k worth of stock at an average buy price of CA$1.20 over the past 12 months. 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 CA$80k, which is not great.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Satellos Bioscience
The Last 12 Months Of Insider Transactions At Satellos Bioscience
The Independent Director Brian Bloom made the biggest insider purchase in the last 12 months. That single transaction was for CA$103k worth of shares at a price of CA$1.44 each. That means that even when the share price was higher than CA$0.37 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$260k for 216.00k shares. On the other hand they divested 40.00k shares, for CA$35k. Overall, Satellos Bioscience insiders were net buyers during the last year. They paid about CA$1.20 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does Satellos Bioscience Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Satellos Bioscience insiders own 15% of the company, worth about CA$2.4m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Satellos Bioscience Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Satellos Bioscience shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Satellos Bioscience insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Satellos Bioscience. Every company has risks, and we've spotted 5 warning signs for Satellos Bioscience (of which 3 don't sit too well with us!) 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.
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