We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
The Last 12 Months Of Insider Transactions At Arcturus Therapeutics Holdings
Over the last year, we can see that the biggest insider purchase was by Chief Financial Officer Andrew Sassine for US$109k worth of shares, at about US$10.90 per share. That means that an insider was happy to buy shares at around the current price of US$10.92. 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. 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 Arcturus Therapeutics Holdings insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 24613 shares worth US$270k. While Arcturus Therapeutics Holdings insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by 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!
Arcturus Therapeutics Holdings 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.
Arcturus Therapeutics Holdings Insiders Bought Stock Recently
It's good to see that Arcturus Therapeutics Holdings insiders have made notable investments in the company's shares. Overall, four insiders shelled out US$270k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Arcturus Therapeutics Holdings insiders own about US$29m worth of shares. That equates to 19% of the company. 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 Arcturus Therapeutics Holdings Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Arcturus Therapeutics Holdings shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Arcturus Therapeutics Holdings, you should check out this free report on analyst forecasts for the company.
Of course Arcturus Therapeutics Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.