Independent Director of Satellos Bioscience Picks Up 1.9% More Stock
Even if it's not a huge purchase, we think it was good to see that Franklin Berger, the Independent Director of Satellos Bioscience Inc. (TSE:MSCL) recently shelled out CA$117k to buy stock, at CA$9.00 per share. However, it only increased their shares held by 1.9%, and it wasn't a huge purchase by absolute value, either.
Satellos Bioscience Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Director Franklin Berger was not their only acquisition of Satellos Bioscience shares this year. They previously made an even bigger purchase of CA$339k worth of shares at a price of CA$13.71 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$12.29). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Franklin Berger.
Franklin Berger purchased 37.74k shares over the year. The average price per share was CA$12.09. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Satellos Bioscience
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Satellos Bioscience
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. Insiders own 7.1% of Satellos Bioscience shares, worth about CA$18m. 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 Satellos Bioscience Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Satellos Bioscience we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Satellos Bioscience. For example, Satellos Bioscience has 4 warning signs (and 3 which are potentially serious) we think you should know about.
But note: Satellos Bioscience 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.
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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.