Need To Know: BARD1 Life Sciences Limited (ASX:BD1) Insiders Have Been Selling Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell BARD1 Life Sciences Limited (ASX:BD1), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for BARD1 Life Sciences

BARD1 Life Sciences Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Jeffrey Emmanuel, for AU$8.2m worth of shares, at about AU$3.09 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (AU$2.23). So it is hard to draw any strong conclusion from it. Jeffrey Emmanuel was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 109.33k shares for AU$76k. But they sold 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does BARD1 Life Sciences Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 22% of BARD1 Life Sciences shares, worth about AU$40m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The BARD1 Life Sciences Insider Transactions Indicate?

It doesn't really mean much that no insider has traded BARD1 Life Sciences shares in the last quarter. Still, the insider transactions at BARD1 Life Sciences in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. 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. Our analysis shows 4 warning signs for BARD1 Life Sciences (3 are concerning!) and we strongly recommend you look at them before investing.

Of course BARD1 Life Sciences 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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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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