Pleasing Signs As A Number Of Insiders Buy Castle Biosciences Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Castle Biosciences, Inc.'s (NASDAQ:CSTL) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Castle Biosciences

The Last 12 Months Of Insider Transactions At Castle Biosciences

In the last twelve months, the biggest single purchase by an insider was when Independent Director Ellen Goldberg bought US$69k worth of shares at a price of US$17.27 per share. That means that an insider was happy to buy shares at above the current price of US$16.69. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Castle Biosciences insiders were buying shares, but not selling. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Castle Biosciences Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Castle Biosciences insiders own 3.4% of the company, worth about US$15m. 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 Does This Data Suggest About Castle Biosciences Insiders?

The fact that there have been no Castle Biosciences insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Castle Biosciences 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 Castle Biosciences. To that end, you should learn about the 2 warning signs we've spotted with Castle Biosciences (including 1 which can't be ignored).

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.