Who Has Been Buying Brainstorm Cell Therapeutics Inc. (NASDAQ:BCLI) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Brainstorm Cell Therapeutics Inc. (NASDAQ:BCLI), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. 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'.

View our latest analysis for Brainstorm Cell Therapeutics

The Last 12 Months Of Insider Transactions At Brainstorm Cell Therapeutics

Over the last year, we can see that the biggest insider sale was by the insider, Joseph Daly, for US$160k worth of shares, at about US$4.96 per share. That means that an insider was selling shares at slightly below the current price (US$6.90). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 3.0% of Joseph Daly's holding. Joseph Daly was the only individual insider to sell over the last year. Notably Joseph Daly was also the biggest buyer, having purchased US$226k worth of shares.

Over the last year, we can see that insiders have bought 38.50k shares worth US$226k. But they sold 33.50k shares for US$160k. In total, Brainstorm Cell Therapeutics insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Brainstorm Cell 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.

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. Brainstorm Cell Therapeutics insiders own about US$14m worth of shares. That equates to 5.6% of the company. 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 Brainstorm Cell Therapeutics Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Brainstorm Cell Therapeutics and we see no evidence to suggest they are worried about the future. 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. Be aware that Brainstorm Cell Therapeutics is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

But note: Brainstorm Cell 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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