Whilst it may not be a huge deal, we thought it was good to see that the Cerus Corporation (NASDAQ:CERS) Independent Director, Franklin Witney, recently bought US$100k worth of stock, for US$4.15 per share. Even though that isn't a massive buy, it did increase their holding by 67%, which is a arguably a good sign.
Cerus Insider Transactions Over The Last Year
In fact, the recent purchase by Franklin Witney was the biggest purchase of Cerus shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$4.81. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Cerus share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 69.76k shares for US$294k. But insiders sold 16444 shares worth US$82k. In total, Cerus insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. 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 Cerus Boast High 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. Insiders own 2.0% of Cerus shares, worth about US$15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Cerus Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Given that insiders also own a fair bit of Cerus we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Cerus, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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