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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Gamida Cell Ltd.'s (NASDAQ:GMDA) instance, it's good news for shareholders.
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.
View our latest analysis for Gamida Cell
The Last 12 Months Of Insider Transactions At Gamida Cell
Over the last year, we can see that the biggest insider purchase was by insider Robert Blum for US$78k worth of shares, at about US$1.55 per share. That means that an insider was happy to buy shares at above the current price of US$1.00. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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.
While Gamida Cell insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Gamida Cell is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Gamida Cell
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data isn't picking up on much insider ownership at Gamida Cell, though insiders do hold about US$308k worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. This level of insider ownership is notably low, and not very encouraging.
What Might The Insider Transactions At Gamida Cell Tell Us?
The fact that there have been no Gamida Cell insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Gamida Cell insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Gamida Cell has 5 warning signs (and 4 which are a bit unpleasant) we think you should know about.