Trade Alert: The Independent Director Of Finch Therapeutics Group, Inc. (NASDAQ:FNCH), Nicholas Haft, Has Just Spent US$650k Buying 1.6% More Shares
Finch Therapeutics Group, Inc. (NASDAQ:FNCH) shareholders (or potential shareholders) will be happy to see that the Independent Director, Nicholas Haft, recently bought a whopping US$650k worth of stock, at a price of US$10.18. 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 1.6%.
View our latest analysis for Finch Therapeutics Group
The Last 12 Months Of Insider Transactions At Finch Therapeutics Group
Notably, that recent purchase by Independent Director Nicholas Haft was not the only time they bought Finch Therapeutics Group shares this year. They previously made an even bigger purchase of US$15m worth of shares at a price of US$17.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$9.32). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Finch Therapeutics Group insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Finch Therapeutics Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Finch Therapeutics Group
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Finch Therapeutics Group insiders own 43% of the company, currently worth about US$188m 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.
What Might The Insider Transactions At Finch Therapeutics Group Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Finch Therapeutics Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. For instance, we've identified 4 warning signs for Finch Therapeutics Group (1 is potentially serious) you should be aware of.
But note: Finch Therapeutics Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
