We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
BioCryst Pharmaceuticals Insider Transactions Over The Last Year
CEO, President & Director Jon Stonehouse made the biggest insider purchase in the last 12 months. That single transaction was for US$73k worth of shares at a price of US$1.45 each. We do like to see buying, but this purchase was made at well below the current price of US$2.90. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While BioCryst Pharmaceuticals insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
BioCryst Pharmaceuticals Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at BioCryst Pharmaceuticals. In total, insiders bought US$283k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership of BioCryst Pharmaceuticals
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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that BioCryst Pharmaceuticals insiders own 1.1% of the company, worth about US$5.1m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At BioCryst Pharmaceuticals Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that BioCryst Pharmaceuticals insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in BioCryst Pharmaceuticals, you should check out this free report on analyst forecasts for the company.
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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