Potential HCW Biologics Inc. (NASDAQ:HCWB) shareholders may wish to note that the Chief Financial Officer, Rebecca Byam, recently bought US$230k worth of stock, paying US$2.54 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 58%.
The Last 12 Months Of Insider Transactions At HCW Biologics
In fact, the recent purchase by Rebecca Byam was the biggest purchase of HCW Biologics shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$2.60 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 HCW Biologics share holders is that insiders were buying at near the current price.
In the last twelve months HCW Biologics 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!
HCW Biologics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of HCW Biologics
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. HCW Biologics insiders own 48% of the company, currently worth about US$45m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The HCW Biologics Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about HCW Biologics. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 5 warning signs for HCW Biologics you should be aware of, and 1 of these makes us a bit uncomfortable.
Of course HCW 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.
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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.
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