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Investors who take an interest in Argent BioPharma Limited (ASX:RGT) should definitely note that the Co-Founder, Roby Zomer, recently paid AU$0.40 per share to buy AU$503k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 3,721%.
View our latest analysis for Argent BioPharma
The Last 12 Months Of Insider Transactions At Argent BioPharma
Notably, that recent purchase by Roby Zomer is the biggest insider purchase of Argent BioPharma shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.35). 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Roby Zomer was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Argent BioPharma is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. It appears that Argent BioPharma insiders own 38% of the company, worth about AU$6.5m. 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 Argent BioPharma Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Argent BioPharma insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 6 warning signs for Argent BioPharma you should be aware of, and 5 of them don't sit too well with us.