Yahoo Finance Bullish Biohaven Ltd. (NYSE:BHVN) insiders filled their treasuries with US$37m worth of stock over last year
Quite a few insiders have dramatically grown their holdings in Biohaven Ltd. (NYSE:BHVN) 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.
Check out our latest analysis for Biohaven
The Last 12 Months Of Insider Transactions At Biohaven
Over the last year, we can see that the biggest insider purchase was by Independent Director John Childs for US$14m worth of shares, at about US$10.50 per share. Even though the purchase was made at a significantly lower price than the recent price (US$14.29), 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.
Biohaven 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Biohaven is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Biohaven
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Biohaven insiders own about US$89m worth of shares. That equates to 9.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Biohaven Tell Us?
It doesn't really mean much that no insider has traded Biohaven shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Biohaven insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Biohaven (including 1 which makes us a bit uncomfortable).
But note: Biohaven 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.
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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.
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