Whilst it may not be a huge deal, we thought it was good to see that the Black Diamond Therapeutics, Inc. (NASDAQ:BDTX) CFO, Principal Financial Officer and Chief Business Officer, Fang Ni, recently bought US$61k worth of stock, for US$2.44 per share. Even though that isn't a massive buy, it did increase their holding by 57%, which is arguably a good sign.
Black Diamond Therapeutics Insider Transactions Over The Last Year
Notably, that recent purchase by Fang Ni is the biggest insider purchase of Black Diamond Therapeutics shares that we've seen in the last year. That implies that an insider found the current price of US$2.62 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Black Diamond Therapeutics share holders is that an insider was buying at near the current price. Fang Ni was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Black Diamond Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$3.3m worth of Black Diamond Therapeutics stock, about 3.5% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Black Diamond Therapeutics Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Black Diamond Therapeutics stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Black Diamond Therapeutics. Be aware that Black Diamond Therapeutics is showing 5 warning signs in our investment analysis, and 2 of those are a bit concerning...
But note: Black Diamond Therapeutics 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, 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.