Viewing insider transactions for ARCA biopharma, Inc.'s (NASDAQ:ABIO ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At ARCA biopharma
In the last twelve months, the biggest single purchase by an insider was when Senior VP Christopher Ozeroff bought US$113k worth of shares at a price of US$2.26 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.01). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Christopher Ozeroff was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
ARCA biopharma is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does ARCA biopharma Boast High Insider Ownership?
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. ARCA biopharma insiders own about US$5.4m worth of shares. That equates to 19% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At ARCA biopharma Tell Us?
It doesn't really mean much that no insider has traded ARCA biopharma shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in ARCA biopharma and we see no evidence to suggest they are worried about the 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. Case in point: We've spotted 3 warning signs for ARCA biopharma you should be aware of, and 2 of them are a bit concerning.
Of course ARCA biopharma may not be the best stock to buy. So you may wish to see this free collection of high quality 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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