Insider Buying: Telix Pharmaceuticals Co-Founder Bought US$500k Of Shares

Potential Telix Pharmaceuticals Limited (ASX:TLX) shareholders may wish to note that the Co-Founder, Christian Behrenbruch, recently bought AU$500k worth of stock, paying AU$12.89 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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Telix Pharmaceuticals Insider Transactions Over The Last Year

In fact, the recent purchase by Co-Founder Christian Behrenbruch was not their only acquisition of Telix Pharmaceuticals shares this year. Earlier in the year, they paid AU$20.84 per share in a AU$1.4m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$12.79). 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Telix Pharmaceuticals insiders were buying shares, but not selling. They paid about AU$15.99 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Telix Pharmaceuticals

Telix Pharmaceuticals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Telix Pharmaceuticals insiders own about AU$645m worth of shares (which is 15% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Telix Pharmaceuticals Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Telix Pharmaceuticals. That's what I like to see! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Telix Pharmaceuticals has 2 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

Of course Telix Pharmaceuticals 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 of direct interests only, but not derivative transactions or indirect interests.

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