Independent Director of Cartesian Therapeutics Picks Up 168% More Stock

Potential Cartesian Therapeutics, Inc. (NASDAQ:RNAC) shareholders may wish to note that the Independent Director, Timothy Barabe, recently bought US$206k worth of stock, paying US$6.86 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 168%, potentially signalling some real optimism.

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The Last 12 Months Of Insider Transactions At Cartesian Therapeutics

The Director Timothy Springer made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$10.92 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.85). 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 insiders purchased 342.09k shares for US$4.4m. But they sold 36.36k shares for US$610k. Overall, Cartesian Therapeutics insiders were net buyers during the last year. They paid about US$12.95 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Cartesian Therapeutics

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Cartesian Therapeutics insiders own 58% of the company, worth about US$119m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Cartesian Therapeutics Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Cartesian Therapeutics insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cartesian Therapeutics. Be aware that Cartesian Therapeutics is showing 4 warning signs in our investment analysis, and 2 of those are concerning...

But note: Cartesian 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 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.