NASDAQ:BTAI).” data-reactid=”28″ type=”text”>It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in BioXcel Therapeutics, Inc. (NASDAQ:BTAI).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
study found that ‘insider purchases earn abnormal returns of more than 6% per year’.” data-reactid=”31″ type=”text”>We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year’.
The Last 12 Months Of Insider Transactions At BioXcel Therapeutics
The Independent Chairman Peter Mueller made the biggest insider purchase in the last 12 months. That single transaction was for US$74k worth of shares at a price of US$8.83 each. Even though the purchase was made at a significantly lower price than the recent price (US$41.18), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
Peter Mueller bought 10.00k shares over the last 12 months at an average price of US$8.84. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
list of companies. (Hint: insiders have been buying them).” data-reactid=”52″ type=”text”>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).
Does BioXcel Therapeutics Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. BioXcel Therapeutics insiders own about US$13m worth of shares. That equates to 1.4% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About BioXcel Therapeutics Insiders?
2 warning signs for BioXcel Therapeutics that deserve your attention before buying any shares.” data-reactid=”56″ type=”text”>It doesn’t really mean much that no insider has traded BioXcel Therapeutics shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don’t see anything to make us think BioXcel Therapeutics 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 BioXcel Therapeutics. At Simply Wall St, we found 2 warning signs for BioXcel Therapeutics that deserve your attention before buying any shares.
collection of high quality companies.” data-reactid=”57″ type=”text”>Of course BioXcel Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
This article by Simply Wall St is general in nature. 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.