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Regencell Bioscience Holdings Limited (NASDAQ:RGC) shareholders (or potential shareholders) will be happy to see that the Founder, Yat-Gai Au, recently bought a whopping US$6.2m worth of stock, at a price of US$9.50. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 6.2%.
Check out our latest analysis for Regencell Bioscience Holdings
Regencell Bioscience Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Yat-Gai Au is the biggest insider purchase of Regencell Bioscience Holdings shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$12.62), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Regencell Bioscience Holdings
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Regencell Bioscience Holdings insiders own about US$133m worth of shares (which is 81% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Regencell Bioscience Holdings Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Regencell Bioscience Holdings. Nice! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Regencell Bioscience Holdings has 3 warning signs we think you should be aware of.