Bright Minds Biosciences Independent Director Nils Bottler Sells 100% Of Holding

We'd be surprised if Bright Minds Biosciences Inc. (CSE:DRUG) shareholders haven't noticed that the Independent Director, Nils Bottler, recently sold CA$261k worth of stock at CA$52.24 per share. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

See our latest analysis for Bright Minds Biosciences

The Last 12 Months Of Insider Transactions At Bright Minds Biosciences

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Ian McDonald, for CA$12m worth of shares, at about CA$40.29 per share. That means that an insider was selling shares at slightly below the current price (CA$52.50). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 31% of Ian McDonald's stake.

All up, insiders sold more shares in Bright Minds Biosciences than they bought, over the last year. 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!

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Does Bright Minds Biosciences Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 22% of Bright Minds Biosciences shares, worth about CA$83m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Bright Minds Biosciences Tell Us?

An insider sold Bright Minds Biosciences shares recently, but they didn't buy any. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 6 warning signs for Bright Minds Biosciences you should be aware of, and 3 of these are potentially serious.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.