A number of insiders bought TransCode Therapeutics, Inc. (NASDAQ:RNAZ) stock last year, which is great news for shareholders




  • In Business
  • 2022-07-04 19:13:45Z
  • By Simply Wall St.
 

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of TransCode Therapeutics, Inc. (NASDAQ:RNAZ), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for TransCode Therapeutics

The Last 12 Months Of Insider Transactions At TransCode Therapeutics

The Co-Founder Robert Dudley made the biggest insider purchase in the last 12 months. That single transaction was for US$55k worth of shares at a price of US$1.87 each. That means that even when the share price was higher than US$1.24 (the recent price), an insider wanted to purchase shares. 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.

TransCode Therapeutics insiders may have bought shares in the last year, but they didn't sell any. They paid about US$1.68 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.

Insiders at TransCode Therapeutics Have Bought Stock Recently

Over the last quarter, TransCode Therapeutics insiders have spent a meaningful amount on shares. In total, insiders bought US$71k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership of TransCode Therapeutics

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 33% of TransCode Therapeutics shares, worth about US$5.3m. 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 TransCode Therapeutics Tell Us?

It is good to see recent purchasing. 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. Insiders likely see value in TransCode Therapeutics shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for TransCode Therapeutics (2 are significant!) that we believe deserve your full attention.

But note: TransCode 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

COMMENTS

More Related News

Do Institutions Own Latitude Group Holdings Limited (ASX:LFS) Shares?
Do Institutions Own Latitude Group Holdings Limited (ASX:LFS) Shares?

Every investor in Latitude Group Holdings Limited ( ASX:LFS ) should be aware of the most powerful shareholder groups...

Insiders who bought Empire Resources Limited (ASX:ERL) stock in the last 12 months recover some losses, but still down AU$125k
Insiders who bought Empire Resources Limited (ASX:ERL) stock in the last 12 months recover some losses, but still down AU$125k

Insiders who purchased AU$533k worth of Empire Resources Limited ( ASX:ERL ) shares over the past year recouped some of...

What You Need To Know About Challenger Exploration Limited
What You Need To Know About Challenger Exploration Limited's (ASX:CEL) Investor Composition

A look at the shareholders of Challenger Exploration Limited ( ASX:CEL ) can tell us which group is most powerful...

What Kind Of Investors Own Most Of Copper Fox Metals Inc. (CVE:CUU)?
What Kind Of Investors Own Most Of Copper Fox Metals Inc. (CVE:CUU)?

Every investor in Copper Fox Metals Inc. ( CVE:CUU ) should be aware of the most powerful shareholder groups. Large...

Do Insiders Own Lots Of Shares In AEye, Inc. (NASDAQ:LIDR)?
Do Insiders Own Lots Of Shares In AEye, Inc. (NASDAQ:LIDR)?

If you want to know who really controls AEye, Inc. ( NASDAQ:LIDR ), then you'll have to look at the makeup of its share...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • recyclinghöfe berlin
    (2022-07-05 14:02:25Z)

    Three are usually cheap Ralph Lauren available for sale each and every time you wish to buy.

    REPLY

Top News: Business