Yahoo Finance Insider Spends US$102k Buying More Shares In Beneficient
Investors who take an interest in Beneficient (NASDAQ:BENF) should definitely note that the Independent Director, Peter Cangany, recently paid US$0.26 per share to buy US$102k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 569%, potentially signalling some real optimism.
View our latest analysis for Beneficient
Beneficient Insider Transactions Over The Last Year
Notably, that recent purchase by Peter Cangany is the biggest insider purchase of Beneficient shares that we've seen in the last year. That means that even when the share price was higher than US$0.13 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. 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 Peter Cangany.
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!
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).
Does Beneficient Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Beneficient insiders own 69% of the company, currently worth about US$28m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Beneficient Insider Transactions Indicate?
It's certainly positive 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Beneficient. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Beneficient. Every company has risks, and we've spotted 6 warning signs for Beneficient (of which 4 are concerning!) you should know about.
But note: Beneficient 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.
