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華爾街日報Humacyte's US$28m Market Cap Fall Books Insider Losses
Insiders who acquired US$146.1k worth of Humacyte, Inc.'s (NASDAQ:HUMA) stock at an average price of US$1.38 in the past 12 months may be dismayed by the recent 12% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$118.7k, which is not great.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Humacyte Insider Transactions Over The Last Year
The Independent Chairman of the Board Kathleen Sebelius made the biggest insider purchase in the last 12 months. That single transaction was for US$66k worth of shares at a price of US$1.32 each. That means that an insider was happy to buy shares at above the current price of US$1.12. 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.
Humacyte insiders may have bought shares in the last year, but they didn't sell any. 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!
See our latest analysis for Humacyte
Humacyte 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
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Humacyte insiders own about US$14m worth of shares. That equates to 6.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Humacyte Tell Us?
The fact that there have been no Humacyte insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Humacyte and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Humacyte. To that end, you should learn about the 4 warning signs we've spotted with Humacyte (including 2 which are potentially serious).
But note: Humacyte 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.