Trade Alert: The Non-Executive Chairman of the Board Of Novacyt S.A. (EPA:ALNOV), James Wakefield, Has Just Spent €68k Buying 119% More Shares

Even if it's not a huge purchase, we think it was good to see that James Wakefield, the Non-Executive Chairman of the Board of Novacyt S.A. (EPA:ALNOV) recently shelled out €68k to buy stock, at €3.41 per share. Even though that isn't a massive buy, it did increase their holding by 119%, which is a arguably a good sign.

Check out our latest analysis for Novacyt

Novacyt Insider Transactions Over The Last Year

In fact, the recent purchase by James Wakefield was the biggest purchase of Novacyt shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of €3.91. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Novacyt share holders is that insiders were buying at near the current price.

In the last twelve months Novacyt insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Novacyt is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about €526k worth of Novacyt shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Do The Novacyt Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Novacyt stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Novacyt (including 2 which are a bit concerning).

Of course Novacyt may not be the best stock to buy. So you may wish to see this free collection of high quality 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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