Positive Signs As Multiple Insiders Buy NewcelX Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in NewcelX Ltd.'s (NASDAQ:NCEL) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At NewcelX
The Independent Director Olivier Samuel made the biggest insider purchase in the last 12 months. That single transaction was for US$225k worth of shares at a price of US$2.75 each. So it's clear an insider wanted to buy, at around the current price, which is US$2.86. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the NewcelX insiders decided to buy shares at close to current prices.
NewcelX insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 NewcelX
NewcelX 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.
Does NewcelX Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that NewcelX insiders own 48% of the company, worth about US$7.9m. 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 NewcelX Insider Transactions Indicate?
It doesn't really mean much that no insider has traded NewcelX shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, NewcelX insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NewcelX. To that end, you should learn about the 3 warning signs we've spotted with NewcelX (including 2 which are potentially serious).
Of course NewcelX 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.