David Perry Bought 8.6% More Shares In Better Therapeutics

Investors who take an interest in Better Therapeutics, Inc. (NASDAQ:BTTX) should definitely note that the Co-Founder & Executive Chairman, David Perry, recently paid US$0.17 per share to buy US$250k worth of the stock. Although the purchase only increased their holding by 8.6%, it is still a solid purchase in our view.

See our latest analysis for Better Therapeutics

Better Therapeutics Insider Transactions Over The Last Year

In fact, the recent purchase by Co-Founder & Executive Chairman David Perry was not their only acquisition of Better Therapeutics shares this year. Earlier in the year, they paid US$0.82 per share in a US$4.1m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.23). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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 Better Therapeutics insiders bought shares during the last year, they didn't sell. The average buy price was around US$0.70. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Better Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Better Therapeutics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Better Therapeutics insiders own about US$5.6m worth of shares (which is 51% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Better Therapeutics Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Better Therapeutics insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Better Therapeutics. To help with this, we've discovered 7 warning signs (5 make us uncomfortable!) that you ought to be aware of before buying any shares in Better Therapeutics.

But note: Better Therapeutics 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.