When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in TScan Therapeutics, Inc.'s (NASDAQ:TCRX) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
TScan Therapeutics Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President David Southwell for US$96k worth of shares, at about US$8.73 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.54). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While TScan Therapeutics insiders bought shares during the last year, they didn't sell. 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!
TScan Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
TScan Therapeutics Insiders Bought Stock Recently
It's good to see that TScan Therapeutics insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$282k worth of shares. This is a positive in our book as it implies some confidence.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.4% of TScan Therapeutics shares, worth about US$8.3m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The TScan Therapeutics Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that TScan Therapeutics insiders are reasonably well aligned, and optimistic for the 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. Case in point: We've spotted 3 warning signs for TScan Therapeutics you should be aware of, and 1 of them is a bit unpleasant.
Of course TScan Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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.
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