It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Anixa Biosciences, Inc. (NASDAQ:ANIX).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Anixa Biosciences Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Lead Independent Director Lewis Titterton for US$205k worth of shares, at about US$4.09 per share. So it's clear an insider wanted to buy, at around the current price, which is US$4.21. 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. 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. The good news for Anixa Biosciences share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders bought 112k shares for a total of US$458k. Anixa Biosciences may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Anixa Biosciences is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Anixa Biosciences Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Anixa Biosciences. Not only was there no selling that we can see, but they collectively bought US$115k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Anixa Biosciences
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Anixa Biosciences insiders own 5.6% of the company, worth about US$4.7m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Anixa Biosciences Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Anixa Biosciences insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Anixa Biosciences, you should check out this free report on analyst forecasts for the company.
But note: Anixa 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.
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