Yahoo Finance Insider Buying: The Precision BioSciences, Inc. (NASDAQ:DTIL) Chief Financial Officer Just Bought 40% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Precision BioSciences, Inc. (NASDAQ:DTIL) Chief Financial Officer, John Kelly, recently bought US$51k worth of stock, for US$1.50 per share. That purchase might not be huge but it did increase their holding by 40%.
View our latest analysis for Precision BioSciences
The Last 12 Months Of Insider Transactions At Precision BioSciences
In fact, the recent purchase by Chief Financial Officer John Kelly was not their only acquisition of Precision BioSciences shares this year. They previously made an even bigger purchase of US$51k worth of shares at a price of US$3.08 per share. That means that an insider was happy to buy shares at above the current price of US$1.57. 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 an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. John Kelly was the only individual insider to buy during the last year.
John Kelly bought a total of 50.46k shares over the year at an average price of US$2.02. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Precision BioSciences insiders own about US$10m worth of shares. That equates to 6.5% of the company. 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 Precision BioSciences Insiders?
The recent insider purchase is heartening. 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 Precision BioSciences we think they are probably pretty confident of a bright future. 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 3 warning signs for Precision BioSciences (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
