Need To Know: Arcturus Therapeutics Ltd. (NASDAQ:ARCT) Insiders Have Been Buying Shares

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Arcturus Therapeutics Ltd. (NASDAQ:ARCT).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’

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Arcturus Therapeutics Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Ester Deutsch bought US$60k worth of shares at a price of US$6.00 per share. That means that even when the share price was higher, an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. It’s not at all bad to see insiders buy shares at or above current prices.

In the last twelve months insiders purchased 29.01k shares for US$187k. But they sold 1.00k for US$9.2k. Overall, Arcturus Therapeutics insiders were net buyers last year. Their average price was about US$6.43. These transactions suggest that insiders have considered the current price of US$5.00 attractive. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGM:ARCT Insider Trading January 18th 19
NasdaqGM:ARCT Insider Trading January 18th 19

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders at Arcturus Therapeutics Have Bought Stock Recently

There was some insider buying at Arcturus Therapeutics over the last quarter. Founder Joseph Payne purchased US$27k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.

Does Arcturus 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. It appears that Arcturus Therapeutics insiders own 32% of the company, worth about US$17m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Arcturus Therapeutics Tell Us?

Our data shows a little more insider buying than selling in the last three months. But the difference isn’t much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Arcturus Therapeutics and their transactions don’t cause us concern. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Arcturus Therapeutics.

But note: Arcturus 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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.