Stock Analysis

BioRestorative Therapies, Inc. (NASDAQ:BRTX) insiders need another US$133k to breakeven on a US$593k stock purchase even after recent gains

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NasdaqCM:BRTX
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Insiders who purchased US$593k worth of BioRestorative Therapies, Inc. (NASDAQ:BRTX) shares over the past year recouped some of their losses after price gained 12% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$133k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for BioRestorative Therapies

The Last 12 Months Of Insider Transactions At BioRestorative Therapies

Over the last year, we can see that the biggest insider purchase was by insider Dale Broadrick for US$263k worth of shares, at about US$5.84 per share. That means that an insider was happy to buy shares at above the current price of US$3.56. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

Over the last year, we can see that insiders have bought 129.21k shares worth US$593k. On the other hand they divested 5.96k shares, for US$20k. In the last twelve months there was more buying than selling by BioRestorative Therapies insiders. The average buy price was around US$4.59. These transactions suggest that insiders have considered the current price attractive. 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!

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NasdaqCM:BRTX Insider Trading Volume March 31st 2023

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).

Insiders At BioRestorative Therapies Have Bought Stock Recently

We saw some BioRestorative Therapies insider buying shares in the last three months. Insiders purchased US$22k 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.

Insider Ownership Of BioRestorative Therapies

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that BioRestorative Therapies insiders own 15% of the company, worth about US$2.0m. 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 BioRestorative Therapies Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in BioRestorative Therapies and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for BioRestorative Therapies (of which 1 doesn't sit too well with us!) you should know about.

Of course BioRestorative Therapies may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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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.