Even if it's not a huge purchase, we think it was good to see that Beth Taylor, the CFO & VP of Finance of Bioanalytical Systems, Inc. (NASDAQ:BASI) recently shelled out US$59k to buy stock, at US$4.43 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Bioanalytical Systems Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Robert Leasure bought US$100k worth of shares at a price of US$3.72 per share. Even though the purchase was made at a significantly lower price than the recent price (US$5.12), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Bioanalytical Systems insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Bioanalytical Systems is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Bioanalytical Systems
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bioanalytical Systems insiders own about US$16m worth of shares. That equates to 28% 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 Does This Data Suggest About Bioanalytical Systems Insiders?
It is good to see recent purchasing. 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. Given that insiders also own a fair bit of Bioanalytical Systems we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bioanalytical Systems. For example, Bioanalytical Systems has 5 warning signs (and 2 which are a bit unpleasant) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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