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 Hancock Jaffe Laboratories, Inc. (NASDAQ:HJLI), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Hancock Jaffe Laboratories
In the last twelve months, the biggest single purchase by an insider was when Independent Director Francis Duhay bought US$51k worth of shares at a price of US$5.33 per share. We do like to see buying, but this purchase was made at well below the current price of US$8.99. 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.
In the last twelve months Hancock Jaffe Laboratories insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Hancock Jaffe Laboratories is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Hancock Jaffe Laboratories Have Bought Stock Recently
We saw some Hancock Jaffe Laboratories insider buying shares in the last three months. Independent Director Matthew Jenusaitis shelled out US$10k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does Hancock Jaffe Laboratories Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Hancock Jaffe Laboratories, though insiders do hold about US$316k worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The Hancock Jaffe Laboratories Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Hancock Jaffe Laboratories insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Hancock Jaffe Laboratories (2 shouldn't be ignored) you should be aware of.
Of course Hancock Jaffe Laboratories 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.
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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