Don't Ignore The Fact That This Insider Just Sold Some Shares In BARD1 Life Sciences Limited (ASX:BD1)

Some BARD1 Life Sciences Limited (ASX:BD1) shareholders may be a little concerned to see that insider Jeffrey Emmanuel recently sold a substantial AU$8.2m worth of stock at a price of AU$3.09 per share. That diminished their holding by a very significant 76%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for BARD1 Life Sciences

BARD1 Life Sciences Insider Transactions Over The Last Year

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. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Happily, we note that in the last year insiders paid AU$76k for 109.33k shares. But they sold 2.66m shares for AU$8.2m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

For a common shareholder, it is worth checking how many shares are held by company insiders. 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 26% of BARD1 Life Sciences shares, worth about AU$61m. 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?

Unfortunately, there has been more insider selling of BARD1 Life Sciences stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BARD1 Life Sciences. For example, BARD1 Life Sciences has 5 warning signs (and 3 which don't sit too well with us) we think you should know about.

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.

When trading BARD1 Life Sciences or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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