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Those following along with CASI Pharmaceuticals, Inc. (NASDAQ:CASI) will no doubt be intrigued by the recent purchase of shares by Wei-Wu He, Chairman & CEO of the company, who spent a stonking US$867k on stock at an average price of US$1.97. Not only is that a big swing, but it increased their holding size by 32%, which is definitely great to see.
CASI Pharmaceuticals Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman & CEO Wei-Wu He was not their only acquisition of CASI Pharmaceuticals shares this year. They previously made an even bigger purchase of US$1.1m worth of shares at a price of US$2.09 per share. We do like to see buying, but this purchase was made at well below the current price of US$2.69. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Wei-Wu He bought 1.24m shares over the last 12 months at an average price of US$2.19. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
CASI Pharmaceuticals 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 CASI Pharmaceuticals
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 17% of CASI Pharmaceuticals shares, worth about US$45m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At CASI Pharmaceuticals Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give 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 CASI Pharmaceuticals insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for CASI Pharmaceuticals (1 is concerning!) and we strongly recommend you look at these before investing.
Of course CASI Pharmaceuticals 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.