Richard Huber Is The Independent Non-Executive Director of AquaBounty Technologies, Inc. (NASDAQ:AQB) And They Just Picked Up 16% More Shares

Even if it's not a huge purchase, we think it was good to see that Richard Huber, the Independent Non-Executive Director of AquaBounty Technologies, Inc. (NASDAQ:AQB) recently shelled out US$65k to buy stock, at US$6.50 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 16%.

Check out our latest analysis for AquaBounty Technologies

AquaBounty Technologies Insider Transactions Over The Last Year

The insider Randal Kirk made the biggest insider purchase in the last 12 months. That single transaction was for US$10m worth of shares at a price of US$2.50 each. Even though the purchase was made at a significantly lower price than the recent price (US$8.09), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While AquaBounty Technologies insiders bought shares during the last year, they didn't sell. The average buy price was around US$1.94. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

AquaBounty Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of AquaBounty Technologies

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 19% of AquaBounty Technologies shares, worth about US$83m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About AquaBounty Technologies Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of AquaBounty Technologies we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in AquaBounty Technologies.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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