Candel Therapeutics, Inc. (NASDAQ:CADL) is up 15%, but insiders still continue to see a loss of US$5.2m on their US$15m investment

By
Simply Wall St
Published
April 15, 2022
NasdaqGM:CADL
Source: Shutterstock

Insiders who bought US$15m worth of Candel Therapeutics, Inc. (NASDAQ:CADL) stock in the last year have seen some of their losses recouped as the stock gained 15% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$5.2m since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Candel Therapeutics

Candel Therapeutics Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman Paul Manning bought US$13m worth of shares at a price of US$8.00 per share. That means that an insider was happy to buy shares at above the current price of US$5.19. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Candel Therapeutics insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGM:CADL Insider Trading Volume April 15th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Candel Therapeutics Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 31% of Candel Therapeutics shares, worth about US$46m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Candel Therapeutics Tell Us?

It doesn't really mean much that no insider has traded Candel Therapeutics shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Candel Therapeutics insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 4 warning signs for Candel Therapeutics (2 are significant) you should be aware of.

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, but not derivative transactions.

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