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Insiders who bought in the last 12 months lose an additional US$231k as Quotient Limited (NASDAQ:QTNT) drops to US$20m

Insiders who acquired US$414k worth of Quotient Limited's (NASDAQ:QTNT) stock at an average price of US$0.33 in the past 12 months may be dismayed by the recent 24% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$183k, which is not great.

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.

See our latest analysis for Quotient

Quotient Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board Heino von Prondzynski bought US$140k worth of shares at a price of US$0.20 per share. That means that even when the share price was higher than US$0.14 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$414k for 1.26m shares. But they sold 4.33k shares for US$2.3k. In total, Quotient insiders bought more than they sold over the last year. The average buy price was around US$0.33. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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insider-trading-volume

Quotient is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Quotient Insiders Bought Stock Recently

It's good to see that Quotient insiders have made notable investments in the company's shares. In total, insiders bought US$214k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Quotient insiders have about 2.6% of the stock, worth approximately US$503k. We consider this fairly low insider ownership.

So What Do The Quotient Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Quotient stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Quotient. When we did our research, we found 6 warning signs for Quotient (2 can't be ignored!) that we believe deserve your full attention.

Of course Quotient may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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