CEO, President & Chairperson of AbCellera Biologics Carl Hansen Buys More Stock

Simply Wall St · 08/31 12:17

AbCellera Biologics Inc. (NASDAQ:ABCL) shareholders (or potential shareholders) will be happy to see that the CEO, President & Chairperson, Carl Hansen, recently bought a whopping US$740k worth of stock, at a price of US$2.61. 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 0.5%.

View our latest analysis for AbCellera Biologics

AbCellera Biologics Insider Transactions Over The Last Year

Notably, that recent purchase by Carl Hansen is the biggest insider purchase of AbCellera Biologics shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$2.56. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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.

While AbCellera Biologics insiders bought shares during the last year, they didn't sell. They paid about US$3.05 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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NasdaqGS:ABCL Insider Trading Volume August 31st 2024

AbCellera Biologics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that AbCellera Biologics insiders own 27% of the company, worth about US$198m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About AbCellera Biologics Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest AbCellera Biologics insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for AbCellera Biologics that deserve your attention before buying any shares.

But note: AbCellera Biologics 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 of direct interests only, but not derivative transactions or indirect interests.