Don't Ignore The Fact That This Insider Just Sold Some Shares In BioHarvest Sciences Inc. (CSE:BHSC)

Some BioHarvest Sciences Inc. (CSE:BHSC) shareholders may be a little concerned to see that the Co-Founder, Zaki Rakib, recently sold a substantial CA$643k worth of stock at a price of CA$0.12 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.0%.

View our latest analysis for BioHarvest Sciences

The Last 12 Months Of Insider Transactions At BioHarvest Sciences

Notably, that recent sale by Zaki Rakib is the biggest insider sale of BioHarvest Sciences shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (CA$0.36). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 4.0%of Zaki Rakib's holding.

Over the last year we saw more insider selling of BioHarvest Sciences shares, than buying. The sellers received a price of around US$0.11, on average. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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!

I will like BioHarvest Sciences better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of BioHarvest Sciences

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. A high insider ownership often makes company leadership more mindful of shareholder interests. BioHarvest Sciences insiders own about CA$95m worth of shares (which is 59% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The BioHarvest Sciences Insider Transactions Indicate?

Unfortunately, there has been more insider selling of BioHarvest 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. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that BioHarvest Sciences is showing 4 warning signs in our investment analysis, and 2 of those make us uncomfortable...

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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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