Whilst it may not be a huge deal, we thought it was good to see that the Compass Therapeutics, Inc. (NASDAQ:CMPX) Co-Founder, Thomas Schuetz, recently bought US$50k worth of stock, for US$2.47 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Compass Therapeutics
Notably, that recent purchase by Co-Founder Thomas Schuetz was not the only time they bought Compass Therapeutics shares this year. Earlier in the year, they paid US$1.80 per share in a US$50k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.43. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Thomas Schuetz bought a total of 48.05k shares over the year at an average price of US$2.08. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
For a common shareholder, it is worth checking how many shares are held by company 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 Compass Therapeutics insiders own 7.3% of the company, worth about US$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Compass Therapeutics Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Compass Therapeutics we think they are probably pretty confident of a bright 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. Case in point: We've spotted 5 warning signs for Compass Therapeutics you should be aware of, and 3 of these are potentially serious.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.