Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of BioDelivery Sciences International, Inc. (NASDAQ:BDSI), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for BioDelivery Sciences International
BioDelivery Sciences International Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Kevin Kotler for US$320k worth of shares, at about US$3.20 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.10). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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.
While BioDelivery Sciences International insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
BioDelivery Sciences International is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
BioDelivery Sciences International Insiders Bought Stock Recently
It's good to see that BioDelivery Sciences International insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$758k worth of shares. That shows some optimism about the company's future.
Insider Ownership of BioDelivery Sciences International
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.9% of BioDelivery Sciences International shares, worth about US$8.7m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About BioDelivery Sciences International Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that BioDelivery Sciences International insiders are expecting 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. While conducting our analysis, we found that BioDelivery Sciences International has 1 warning sign and it would be unwise to ignore this.