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Trade Alert: The Independent Chairman Of 22nd Century Group, Inc. (NYSEMKT:XXII), Nora Sullivan, Has Just Spent US$83k Buying 174% More Shares

Simply Wall St
·3 mins read

Even if it's not a huge purchase, we think it was good to see that Nora Sullivan, the Independent Chairman of 22nd Century Group, Inc. (NYSEMKT:XXII) recently shelled out US$83k to buy stock, at US$0.82 per share. While that isn't the hugest buy, it actually boosted their shareholding by 174%, which is good to see.

View our latest analysis for 22nd Century Group

The Last 12 Months Of Insider Transactions At 22nd Century Group

Over the last year, we can see that the biggest insider purchase was by Director Clifford Fleet for US$190k worth of shares, at about US$1.97 per share. That means that an insider was happy to buy shares at above the current price of US$0.79. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 201.33k shares for US$273k. But insiders sold 48000 shares worth US$101k. In the last twelve months there was more buying than selling by 22nd Century Group insiders. Their average price was about US$1.36. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

AMEX:XXII Recent Insider Trading June 8th 2020
AMEX:XXII Recent Insider Trading June 8th 2020

22nd Century Group 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 22nd Century Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data isn't picking up on much insider ownership at 22nd Century Group, though insiders do hold about US$649k worth of shares. We might be missing something but that seems like very low insider ownership.

So What Do The 22nd Century Group Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on 22nd Century Group stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for 22nd Century Group you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course 22nd Century Group 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. 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. Thank you for reading.