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Looking at TScan Therapeutics, Inc.'s (NASDAQ:TCRX ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for TScan Therapeutics
The Last 12 Months Of Insider Transactions At TScan Therapeutics
In the last twelve months, the biggest single purchase by an insider was when Director Barbara Klencke bought US$56k worth of shares at a price of US$5.69 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.43). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Barbara Klencke.
Barbara Klencke bought 15.00k shares over the last 12 months at an average price of US$5.50. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of TScan Therapeutics
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, TScan Therapeutics insiders have about 0.8% of the stock, worth approximately US$1.1m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About TScan Therapeutics Insiders?
It doesn't really mean much that no insider has traded TScan Therapeutics shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if TScan Therapeutics 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. While conducting our analysis, we found that TScan Therapeutics has 3 warning signs and it would be unwise to ignore them.