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Those following along with Cartesian Therapeutics, Inc. (NASDAQ:RNAC) will no doubt be intrigued by the recent purchase of shares by Timothy Springer, Director of the company, who spent a stonking US$1.4m on stock at an average price of US$15.26. While that only increased their holding size by 1.0%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Cartesian Therapeutics
In fact, the recent purchase by Director Timothy Springer was not their only acquisition of Cartesian Therapeutics shares this year. Earlier in the year, they paid US$18.42 per share in a US$7.4m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$16.05). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 816.20k shares worth US$15m. But they sold 36.36k shares for US$610k. In the last twelve months there was more buying than selling by Cartesian Therapeutics insiders. 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!
View our latest analysis for Cartesian Therapeutics
Cartesian Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Cartesian Therapeutics
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. Cartesian Therapeutics insiders own about US$240m worth of shares (which is 58% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Cartesian Therapeutics Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Cartesian Therapeutics. That's what I like to see! 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. To that end, you should learn about the 4 warning signs we've spotted with Cartesian Therapeutics (including 3 which are a bit concerning).