Despite Hitting US$3.07, biote Insiders Still Sold Too Soon

Even though biote Corp. (NASDAQ:BTMD) has fallen by 27% over the past week , insiders who sold US$204k worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$6.20 is still lower than the current share price.

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 biote

biote Insider Transactions Over The Last Year

The Chief Financial Officer, Robert Peterson, made the biggest insider sale in the last 12 months. That single transaction was for US$204k worth of shares at a price of US$6.20 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$3.07. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Robert Peterson.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does biote Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 24% of biote shares, worth about US$36m. 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 biote Tell Us?

The fact that there have been no biote insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by biote insiders. But it's good to see that insiders own shares in the company. 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 4 warning signs for biote you should be aware of, and 2 of these are concerning.

Of course biote 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 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.