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Investors who take an interest in biote Corp. (NASDAQ:BTMD) should definitely note that the Executive Chairman, Marc Beer, recently paid US$3.87 per share to buy US$417k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Check out our latest analysis for biote
The Last 12 Months Of Insider Transactions At biote
Notably, that recent purchase by Marc Beer is the biggest insider purchase of biote shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$4.22. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the biote insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 183.49k shares worth US$710k. But they sold 32.87k shares for US$204k. In total, biote insiders bought more than they sold over the last year. 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!
biote 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 biote
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 biote insiders own 24% of the company, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The biote Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest biote insiders are well aligned, and that they may think the share price is too low. 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. Our analysis shows 4 warning signs for biote (1 is potentially serious!) and we strongly recommend you look at them before investing.