Yahoo Finance Positive Signs As Multiple Insiders Buy Theratechnologies Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Theratechnologies Inc. (TSE:TH), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Theratechnologies
The Last 12 Months Of Insider Transactions At Theratechnologies
In the last twelve months, the biggest single purchase by an insider was when Independent Director Andrew Molson bought CA$182k worth of shares at a price of CA$1.42 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$2.30), 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.
Theratechnologies 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Theratechnologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Theratechnologies Have Bought Stock Recently
We saw some Theratechnologies insider buying shares in the last three months. Independent Director Dale MacCandlish-Weil shelled out CA$50k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Does Theratechnologies Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Theratechnologies insiders have about 1.1% of the stock, worth approximately CA$1.3m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Theratechnologies Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Theratechnologies stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Theratechnologies. Every company has risks, and we've spotted 5 warning signs for Theratechnologies (of which 2 are a bit unpleasant!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
