Quite a few insiders have dramatically grown their holdings in Selecta Biosciences, Inc. (NASDAQ:SELB) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Selecta Biosciences
The Independent Director & Member of Scientific Advisory Board Timothy Springer made the biggest insider purchase in the last 12 months. That single transaction was for US$9.6m worth of shares at a price of US$2.71 each. Even though the purchase was made at a significantly lower price than the recent price (US$4.13), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 10.32m shares for US$30m. On the other hand they divested 41.86k shares, for US$185k. Overall, Selecta Biosciences insiders were net buyers during the last year. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Selecta Biosciences Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Selecta Biosciences shares over the last three months. In that time, insiders dumped US$117k worth of shares. Meanwhile Independent Director Timothy Barabe bought US$36k worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
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. Selecta Biosciences insiders own 24% of the company, currently worth about US$114m based on the recent share price. 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 Does This Data Suggest About Selecta Biosciences Insiders?
Unfortunately, there has been more insider selling of Selecta Biosciences stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Selecta Biosciences. To help with this, we've discovered 4 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Selecta Biosciences.
But note: Selecta Biosciences 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, 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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