President of Societal CDMO J. Enloe Buys 36% More Shares
Even if it's not a huge purchase, we think it was good to see that J. Enloe, the President of Societal CDMO, Inc. (NASDAQ:SCTL) recently shelled out US$50k to buy stock, at US$0.40 per share. That purchase might not be huge but it did increase their holding by 36%.
View our latest analysis for Societal CDMO
The Last 12 Months Of Insider Transactions At Societal CDMO
Notably, that recent purchase by J. Enloe is the biggest insider purchase of Societal CDMO shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$0.55), 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.
Societal CDMO insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Societal CDMO is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$955k worth of Societal CDMO stock, about 1.7% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Societal CDMO Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Societal CDMO insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Societal CDMO. For example, Societal CDMO has 5 warning signs (and 2 which are significant) we think you should know about.
Of course Societal CDMO 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.
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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.
