Insiders sitting comfortably on a profit of US$10 million after buying shares of AbCellera Biologics Inc. (NASDAQ:ABCL) worth US$20 million last year
Insiders who bought AbCellera Biologics Inc. (NASDAQ:ABCL) over the past 12 months should not be deeply affected by the stock’s 16% decline over the past week. After factoring in the recent loss, the $20 million worth of stock they bought is now worth $30 million, indicating that their investment has generated a positive return.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would consider it foolish to completely ignore insider trading.
See our latest analysis for AbCellera Biologics
The last 12 months of insider trading at AbCellera Biologics
In the past twelve months, the largest single insider purchase was when CEO, Chairman and President Carl Hansen purchased $9.0 million worth of stock at $6.41 per share. We like to see buy, but this buy was made well below the current price of US$11.44. Because it occurred at a lower valuation, that tells us little about whether insiders might find today’s price attractive.
Fortunately, we note that last year insiders paid $20 million for 2.65 million shares. But they sold 300,000 shares for $5.1 million. Overall, AbCellera Biologics insiders were net buyers over the past year. The average purchase price was approximately US$7.62. We don’t deny that it’s nice to see insiders buying shares of the company. However, you should keep in mind that they bought when the stock price was significantly lower than today’s levels. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!
AbCellera Biologics isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.
AbCellera Biologics Insiders Recently Bought Stock
Over the past quarter, AbCellera Biologics insiders have spent a significant amount on stock. Specifically, CEO, Chairman and President Carl Hansen bought US$999,000 worth of stock around this time, and we saw no sales. This shows some optimism about the future of the company.
Insider property of AbCellera Biologics
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. I think it’s a good sign if insiders have a significant number of shares in the company. It’s great to see that AbCellera Biologics insiders own 27% of the company, worth approximately $890 million. This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
What could insider trading at AbCellera Biologics tell us?
It is certainly positive to see the recent insider buying. And longer-term insider trading also gives us confidence. Once you factor in the strong insider ownership, it certainly seems like insiders are positive about AbCellera Biologics. Sounds promising! So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. To do this, you need to find out about the 2 warning signs we spotted with AbCellera Biologics (including 1 that doesn’t suit us too much).
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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