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Whilst it may not be a huge deal, we thought it was good to see that the Longeveron Inc. (NASDAQ:LGVN) Director, Rock Soffer, recently bought US$73k worth of stock, for US$3.66 per share. Even though that isn't a massive buy, it did increase their holding by 74%, which is arguably a good sign.
Longeveron Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director Donald Soffer bought US$1.0m worth of shares at a price of US$10.00 per share. That means that an insider was happy to buy shares at above the current price of US$3.98. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Longeveron insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$8.46. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Longeveron 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Longeveron insiders own 85% of the company, currently worth about US$66m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Longeveron Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Longeveron. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Longeveron has 4 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
But note: Longeveron 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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