Insider Buying: Vincerx Pharma, Inc. (NASDAQ: VINC) Founder Just Bought 2.5% More Shares
While it might not be a big deal, we thought it was good to see that the Vincerx Pharma, Inc. (NASDAQ:VINC) Founder Raquel Izumi recently purchased $56,000 worth of stock at $1.41 per share. However, this only increased their holdings by 2.5%, and it was not a huge buy in absolute terms either.
Check out our latest analysis for Vincerx Pharma
Vincerx Pharma insider trading over the past year
Founder Ahmed Hamdy made the biggest insider buy in the past 12 months. This single transaction was for US$65,000 of shares at a price of US$10.02 each. This means that even when the stock price was above US$1.32 (the recent price), an insider wanted to buy some stock. Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. In our view, the price an insider pays for a stock is very important. Generally, we are more positive about a stock if insiders bought the stock above current prices, as this suggests they viewed the stock as good value, even at a higher price.
While Vincerx Pharma insiders have bought shares over the past year, they haven’t sold. The average purchase price was approximately US$3.00. I would view this as a positive as it suggests insiders are seeing value around the current price. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).
Does Vincerx Pharma boast of high insider ownership?
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. Vincerx Pharma insiders own approximately $5.3 million in stock. This equates to 19% of the business. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
So what do Vincerx Pharma’s insider trading indicate?
Recent insider buying is encouraging. And longer-term insider trading also gives us confidence. But on the other hand, the company has made a loss in the last year, which makes us a bit cautious. Given that insiders also own a good chunk of Vincerx Pharma, we think they’re probably pretty confident of a bright future. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. For example, we have identified 4 warning signs for Vincerx Pharma (1 should not be ignored) which you should be aware of.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
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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