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Insiders who acquired US$775.1k worth of Humacyte, Inc.'s (NASDAQ:HUMA) stock at an average price of US$6.64 in the past 12 months may be dismayed by the recent 17% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$514.8k, which is not great.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Humacyte
The Last 12 Months Of Insider Transactions At Humacyte
The insider Gordon Binder made the biggest insider purchase in the last 12 months. That single transaction was for US$668k worth of shares at a price of US$6.78 each. That means that an insider was happy to buy shares at above the current price of US$4.41. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$775k for 116.74k shares. On the other hand they divested 64.57k shares, for US$502k. In the last twelve months there was more buying than selling by Humacyte insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Humacyte is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Have Humacyte Insiders Traded Recently?
Over the last three months, we've seen a bit of insider buying at Humacyte. Founder Laura Niklason bought US$8.0k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Humacyte Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Humacyte insiders own 9.2% of the company, worth about US$52m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.