Cardiff Oncology, Inc. (NASDAQ:CRDF) insiders placed bullish bets worth US$681k in the last 12 months
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Cardiff Oncology, Inc. (NASDAQ:CRDF), it sends a favourable message to the company's shareholders.
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 Cardiff Oncology
Cardiff Oncology Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Gary Pace bought US$203k worth of shares at a price of US$6.75 per share. That means that an insider was happy to buy shares at above the current price of US$2.47. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Cardiff Oncology insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$7.81. This is nice to see since it implies that insiders might see value around current prices. 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!
Cardiff Oncology 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.
Insider Ownership
Many investors like to check how much of a company is owned by 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. Our data suggests Cardiff Oncology insiders own 1.6% of the company, worth about US$1.7m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Cardiff Oncology Insiders?
It doesn't really mean much that no insider has traded Cardiff Oncology shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Cardiff Oncology stock. 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 5 warning signs we've spotted with Cardiff Oncology (including 2 which make us uncomfortable).
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.
