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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Knight Therapeutics Inc. (TSE:GUD), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. 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'.
Check out our latest analysis for Knight Therapeutics
The Last 12 Months Of Insider Transactions At Knight Therapeutics
Notably, that recent purchase by Jonathan Goodman is the biggest insider purchase of Knight Therapeutics shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$5.31. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Knight Therapeutics share holders is that insiders were buying at near the current price.
Knight Therapeutics insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Knight Therapeutics 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.
Insiders at Knight Therapeutics Have Bought Stock Recently
It's good to see that Knight Therapeutics insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$209k worth of shares. This makes one think the business has some good points.
Insider Ownership of Knight Therapeutics
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Knight Therapeutics insiders own 18% of the company, worth about CA$119m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.