Yahoo Finance Favourable Signals For Advanced Oncotherapy: Numerous Insiders Acquired Stock \
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Advanced Oncotherapy plc (LON:AVO), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Advanced Oncotherapy
Advanced Oncotherapy Insider Transactions Over The Last Year
The Independent Non-Executive Director Michael Bradfield made the biggest insider purchase in the last 12 months. That single transaction was for UK£66k worth of shares at a price of UK£0.13 each. That means that even when the share price was higher than UK£0.052 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Advanced Oncotherapy 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!
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).
Insider Ownership Of Advanced Oncotherapy
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Advanced Oncotherapy insiders own 22% of the company, worth about UK£6.1m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Advanced Oncotherapy Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Advanced Oncotherapy shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Advanced Oncotherapy insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Advanced Oncotherapy. Case in point: We've spotted 6 warning signs for Advanced Oncotherapy you should be aware of, and 2 of these are concerning.
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, 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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