Insiders who bought TScan Therapeutics, Inc. (NASDAQ:TCRX) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$27m as a result of the stock's 12% gain over the same period. Put another way, the original US$108.8k acquisition is now worth US$227.3k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At TScan Therapeutics
Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Timothy Barberich for US$100k worth of shares, at about US$2.63 per share. We do like to see buying, but this purchase was made at well below the current price of US$5.18. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While TScan Therapeutics insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
TScan Therapeutics 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.
Does TScan Therapeutics Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$2.0m worth of TScan Therapeutics stock, about 0.8% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About TScan Therapeutics Insiders?
The fact that there have been no TScan Therapeutics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think TScan Therapeutics insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (3 are potentially serious!) that you ought to be aware of before buying any shares in TScan Therapeutics.
Of course TScan Therapeutics 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 of direct interests only, but not derivative transactions or indirect interests.
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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.