Yahoo Finance Insider Buying: The TScan Therapeutics, Inc. (NASDAQ:TCRX) President Just Bought 17% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the TScan Therapeutics, Inc. (NASDAQ:TCRX) President, David Southwell, recently bought US$90k worth of stock, for US$3.59 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 17%.
See our latest analysis for TScan Therapeutics
The Last 12 Months Of Insider Transactions At TScan Therapeutics
In fact, the recent purchase by President David Southwell was not their only acquisition of TScan Therapeutics shares this year. Earlier in the year, they paid US$8.73 per share in a US$96k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.05). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months TScan Therapeutics insiders were buying shares, but not selling. The average buy price was around US$5.62. This is nice to see since it implies that insiders might see value around current prices. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that TScan Therapeutics insiders own 5.6% of the company, worth about US$4.1m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About TScan Therapeutics Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that TScan Therapeutics insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that TScan Therapeutics is showing 4 warning signs in our investment analysis, and 1 of those is potentially serious...
But note: TScan Therapeutics 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.
