David Johnson Bought 232% More Shares In Aura Biosciences
Those following along with Aura Biosciences, Inc. (NASDAQ:AURA) will no doubt be intrigued by the recent purchase of shares by David Johnson, Independent Chairman of the Board of the company, who spent a stonking US$1.4m on stock at an average price of US$7.19. That increased their holding by a full 232%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
See our latest analysis for Aura Biosciences
Aura Biosciences Insider Transactions Over The Last Year
Notably, that recent purchase by David Johnson is the biggest insider purchase of Aura Biosciences shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$7.69. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Aura Biosciences insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was David Johnson.
David Johnson bought 235.67k shares over the last 12 months at an average price of US$7.58. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Aura Biosciences 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.
Does Aura Biosciences Boast High 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 Aura Biosciences insiders own 0.9% of the company, worth about US$3.6m. I generally like to see higher levels of ownership.
So What Do The Aura Biosciences Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Aura Biosciences insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 5 warning signs we've spotted with Aura Biosciences (including 3 which can't be ignored).
But note: Aura Biosciences 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 of direct interests only, but not derivative transactions or indirect interests.
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