Bullish BioRestorative Therapies, Inc. (NASDAQ:BRTX) insiders filled their treasuries with US$593k worth of stock over last year
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of BioRestorative Therapies, Inc. (NASDAQ:BRTX), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for BioRestorative Therapies
The Last 12 Months Of Insider Transactions At BioRestorative Therapies
The insider Dale Broadrick made the biggest insider purchase in the last 12 months. That single transaction was for US$263k worth of shares at a price of US$5.84 each. That means that an insider was happy to buy shares at above the current price of US$3.30. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.
Happily, we note that in the last year insiders paid US$593k for 129.21k shares. But insiders sold 5.96k shares worth US$20k. In the last twelve months there was more buying than selling by BioRestorative Therapies insiders. The average buy price was around US$4.59. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
BioRestorative Therapies Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at BioRestorative Therapies. Insiders purchased US$22k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Does BioRestorative Therapies Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 15% of BioRestorative Therapies shares, worth about US$1.9m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The BioRestorative Therapies Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in BioRestorative Therapies and we see no evidence to suggest they are worried about the future. 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. When we did our research, we found 5 warning signs for BioRestorative Therapies (1 is potentially serious!) that we believe deserve your full attention.
But note: BioRestorative Therapies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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