Yahoo Finance Jacob Chacko Is The President of ORIC Pharmaceuticals, Inc. (NASDAQ:ORIC) And They Just Picked Up 128% More Shares
Those following along with ORIC Pharmaceuticals, Inc. (NASDAQ:ORIC) will no doubt be intrigued by the recent purchase of shares by Jacob Chacko, President of the company, who spent a stonking US$1.3m on stock at an average price of US$2.86. That purchase boosted their holding by 128%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
View our latest analysis for ORIC Pharmaceuticals
The Last 12 Months Of Insider Transactions At ORIC Pharmaceuticals
Notably, that recent purchase by Jacob Chacko is the biggest insider purchase of ORIC Pharmaceuticals shares that we've seen in the last year. That means that even when the share price was higher than US$2.81 (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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
ORIC Pharmaceuticals insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$3.41. These transactions suggest that insiders have considered the current price attractive. 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
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, ORIC Pharmaceuticals insiders have about 2.2% of the stock, worth approximately US$2.5m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At ORIC Pharmaceuticals Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on ORIC Pharmaceuticals stock. 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. For example, ORIC Pharmaceuticals has 5 warning signs (and 2 which are concerning) we think you should know about.
Of course ORIC Pharmaceuticals may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
