AbCellera Biologics Insiders Added US$4.2m Of Stock To Their Holdings \
Over the last year, a good number of insiders have significantly increased their holdings in AbCellera Biologics Inc. (NASDAQ:ABCL). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for AbCellera Biologics
AbCellera Biologics Insider Transactions Over The Last Year
The CEO, President & Chairperson Carl Hansen made the biggest insider purchase in the last 12 months. That single transaction was for US$2.3m worth of shares at a price of US$11.46 each. That means that even when the share price was higher than US$7.58 (the recent price), an insider wanted to purchase shares. 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
AbCellera Biologics insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$9.39. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
AbCellera Biologics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At AbCellera Biologics Have Bought Stock Recently
It's good to see that AbCellera Biologics insiders have made notable investments in the company's shares. In total, insiders bought US$1.1m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership Of AbCellera Biologics
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. AbCellera Biologics insiders own about US$592m worth of shares (which is 27% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At AbCellera Biologics Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest AbCellera Biologics insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While we like knowing 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. Every company has risks, and we've spotted 1 warning sign for AbCellera Biologics you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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