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Insiders who bought US$122.0k worth of Shield Therapeutics plc (LON:STX) stock in the last year have seen some of their losses recouped as the stock gained 13% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$28k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Shield Therapeutics
Shield Therapeutics Insider Transactions Over The Last Year
The Independent Non Executive Chairman Hans Hasler made the biggest insider purchase in the last 12 months. That single transaction was for UK£122k worth of shares at a price of UK£0.061 each. That means that an insider was happy to buy shares at above the current price of UK£0.047. 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. 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. Hans Hasler was the only individual insider to buy shares in the last twelve months.
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!
Shield Therapeutics 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.
Insider Ownership Of Shield Therapeutics
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Shield Therapeutics insiders have about 2.7% of the stock, worth approximately UK£984k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.
What Might The Insider Transactions At Shield Therapeutics Tell Us?
It doesn't really mean much that no insider has traded Shield Therapeutics shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Shield Therapeutics insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shield Therapeutics. Our analysis shows 4 warning signs for Shield Therapeutics (1 is potentially serious!) and we strongly recommend you look at them before investing.