Trade Alert: The CEO, President & Chairperson Of AbCellera Biologics Inc. (NASDAQ:ABCL), Carl Hansen, Has Just Spent US$859k Buying A Few More Shares
Those following along with AbCellera Biologics Inc. (NASDAQ:ABCL) will no doubt be intrigued by the recent purchase of shares by Carl Hansen, CEO, President & Chairperson of the company, who spent a stonking US$859k on stock at an average price of US$10.10. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.2%.
Check out our latest analysis for AbCellera Biologics
The Last 12 Months Of Insider Transactions At AbCellera Biologics
In fact, the recent purchase by CEO, President & Chairperson Carl Hansen was not their only acquisition of AbCellera Biologics shares this year. Earlier in the year, they paid US$6.41 per share in a US$9.0m purchase. We do like to see buying, but this purchase was made at well below the current price of US$10.60. 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.
While AbCellera Biologics insiders bought shares during the last year, they didn't sell. Their average price was about US$7.26. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
AbCellera Biologics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. AbCellera Biologics insiders own 27% of the company, currently worth about US$831m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About AbCellera Biologics Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest AbCellera Biologics insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AbCellera Biologics. In terms of investment risks, we've identified 2 warning signs with AbCellera Biologics and understanding them should be part of your investment process.
Of course AbCellera Biologics 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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here