Insider Stock Buyers At Biosenta Recouped Some Losses This Week

Insiders who purchased CA$685.3k worth of Biosenta Inc. (CSE:ZRO) shares over the past year recouped some of their losses after price gained 114% last week. However, total losses seen by insiders are still CA$173k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Biosenta

The Last 12 Months Of Insider Transactions At Biosenta

Over the last year, we can see that the biggest insider purchase was by President Amarvir Gill for CA$500k worth of shares, at about CA$0.40 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.30). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Biosenta insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Biosenta is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Are Biosenta Insiders Buying Or Selling?

There was only a small bit of insider buying, worth CA$4.9k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership Of Biosenta

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. Biosenta insiders own about CA$2.9m worth of shares. That equates to 30% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Biosenta Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Biosenta and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Biosenta. When we did our research, we found 7 warning signs for Biosenta (6 make us uncomfortable!) that we believe deserve your full attention.

But note: Biosenta 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.