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The recent price decline of 19% in BioAtla, Inc.'s (NASDAQ:BCAB) stock may have disappointed insiders who bought US$172.5k worth of shares at an average price of US$2.12 in the past 12 months. 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$106.8k, 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for BioAtla
The Last 12 Months Of Insider Transactions At BioAtla
Over the last year, we can see that the biggest insider purchase was by Co-Founder Jay Short for US$107k worth of shares, at about US$2.14 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.31). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
BioAtla insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
BioAtla 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.
Does BioAtla 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. Insiders own 9.0% of BioAtla shares, worth about US$5.9m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The BioAtla Insider Transactions Indicate?
The fact that there have been no BioAtla insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if BioAtla insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 5 warning signs for BioAtla (2 are significant!) that we believe deserve your full attention.