Vincerx Pharma, Inc. (NASDAQ:VINC) up 10%, but insiders are still down 85% after purchasing US$806k of stock last year
Insiders who purchased US$806k worth of Vincerx Pharma, Inc. (NASDAQ:VINC) shares over the past year recouped some of their losses after price gained 10% last week. However, total losses seen by insiders are still US$684k but in since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Vincerx Pharma
The Last 12 Months Of Insider Transactions At Vincerx Pharma
Over the last year, we can see that the biggest insider purchase was by Director Andrew McDonald for US$248k worth of shares, at about US$12.38 per share. That means that an insider was happy to buy shares at above the current price of US$1.81. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months Vincerx Pharma insiders were buying shares, but not selling. You can see the insider transactions (by companies and 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!
Vincerx Pharma 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 Vincerx Pharma
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. It appears that Vincerx Pharma insiders own 19% of the company, worth about US$7.2m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Vincerx Pharma Insiders?
It doesn't really mean much that no insider has traded Vincerx Pharma shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Vincerx Pharma and their transactions don't cause us concern. 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 that end, you should learn about the 6 warning signs we've spotted with Vincerx Pharma (including 2 which are significant).
Of course Vincerx Pharma 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.
