Societal CDMO Reaches US$52m Market Cap Benefiting Insider Stock Buying
Insiders who bought Societal CDMO, Inc. (NASDAQ:SCTL) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$11m as a result of the stock's 26% gain over the same period. As a result, the stock they originally bought for US$162.1k is now worth US$201.1k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Societal CDMO
The Last 12 Months Of Insider Transactions At Societal CDMO
While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.
Societal CDMO insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Does Societal CDMO Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Societal CDMO insiders own 9.2% of the company, worth about US$4.8m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Societal CDMO Insider Transactions Indicate?
The fact that there have been no Societal CDMO insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Societal CDMO insiders bought more shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 5 warning signs for Societal CDMO that deserve your attention before buying any shares.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
