Are Insiders Selling BARD1 Life Sciences Limited (ASX:BD1) Stock?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in BARD1 Life Sciences Limited (ASX:BD1).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for BARD1 Life Sciences

The Last 12 Months Of Insider Transactions At BARD1 Life Sciences

Notably, that recent sale by Jeffrey Emmanuel is the biggest insider sale of BARD1 Life Sciences shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of AU$2.81. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid AU$76k for 109.33k shares. On the other hand they divested 2.66m shares, for AU$8.2m. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders at BARD1 Life Sciences Have Sold Stock Recently

There was substantially more insider selling, than buying, of BARD1 Life Sciences shares over the last three months. We note insider Jeffrey Emmanuel cashed in AU$8.2m worth of shares. On the other hand we note Independent Non-Executive Chairman Geoffrey Cumming bought AU$7.1k worth of shares. We don't view these transactions as a positive sign.

Does BARD1 Life Sciences Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. BARD1 Life Sciences insiders own about AU$61m worth of shares. That equates to 26% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About BARD1 Life Sciences Insiders?

The stark truth for BARD1 Life Sciences is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 5 warning signs (3 are potentially serious!) that you ought to be aware of before buying any shares in BARD1 Life Sciences.

But note: BARD1 Life Sciences 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.

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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.
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