Insider Stock Buying Reaches US$845k On HCW Biologics
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 HCW Biologics Inc. (NASDAQ:HCWB), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for HCW Biologics
The Last 12 Months Of Insider Transactions At HCW Biologics
In the last twelve months, the biggest single purchase by an insider was when Chief Financial Officer Rebecca Byam bought US$230k worth of shares at a price of US$2.59 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.02). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
HCW Biologics insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$2.15. 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
HCW Biologics Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at HCW Biologics. Not only was there no selling that we can see, but they collectively bought US$351k worth of shares. That shows some optimism about the company's future.
Insider Ownership Of HCW Biologics
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. It's great to see that HCW Biologics insiders own 45% of the company, worth about US$34m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About HCW Biologics Insiders?
The recent insider purchases are heartening. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about HCW Biologics. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HCW Biologics. When we did our research, we found 5 warning signs for HCW Biologics (1 is concerning!) that we believe deserve your full attention.
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.
