With BioRestorative Therapies Up 18%, Insider Buyers Count Their Returns

BioRestorative Therapies, Inc. (NASDAQ:BRTX) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a US$2.2m addition to the company’s market value. As a result, the stock they originally bought for US$172.5k is now worth US$259.8k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for BioRestorative Therapies

BioRestorative Therapies Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Dale Broadrick bought US$162k worth of shares at a price of US$1.38 per share. Even though the purchase was made at a significantly lower price than the recent price (US$2.03), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 128.31k shares for US$172k. On the other hand they divested 1.11k shares, for US$1.8k. In total, BioRestorative Therapies insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Are BioRestorative Therapies Insiders Buying Or Selling?

In the last three months, insider Dale Broadrick sold US$1.8k worth of shares. That's not much at all. Ultimately the overall selling isn't enough to tell us much.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. BioRestorative Therapies insiders own about US$2.5m worth of shares. That equates to 20% 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.

So What Do The BioRestorative Therapies Insider Transactions Indicate?

We did not see any insider buying in the last three months, but we did see selling. But given the selling was modest, we're not worried. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in BioRestorative Therapies 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. Case in point: We've spotted 3 warning signs for BioRestorative Therapies you should be aware of, and 2 of them make us uncomfortable.

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.