Insiders Enjoy US$1.3m Return After Buying Candel Therapeutics Stock

Insiders who bought Candel Therapeutics, Inc. (NASDAQ:CADL) stock lover the last 12 months are probably not as affected by last week’s 30% loss. After taking the recent loss into consideration, the US$3.00m worth of stock they bought is now worth US$4.30m, indicating that their investment yielded a positive return.

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.

See our latest analysis for Candel Therapeutics

Candel Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Chairman Paul Manning for US$3.0m worth of shares, at about US$6.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.60. 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.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Candel Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Candel Therapeutics Insiders Bought Stock Recently

There has been significantly more insider buying, than selling, at Candel Therapeutics, over the last three months. In total, Independent Chairman Paul Manning bought US$3.0m worth of shares in that time. On the other hand, insiders netted US$1.6m by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does Candel Therapeutics Boast High 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. We usually like to see fairly high levels of insider ownership. Candel Therapeutics insiders own about US$38m worth of shares. That equates to 11% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Candel Therapeutics Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Candel Therapeutics insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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 5 warning signs for Candel Therapeutics (4 are a bit unpleasant) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.