CG Oncology Insiders Added US$5.06m Of Stock To Their Holdings

Over the last year, a good number of insiders have significantly increased their holdings in CG Oncology, Inc. (NASDAQ:CGON). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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.

View our latest analysis for CG Oncology

The Last 12 Months Of Insider Transactions At CG Oncology

In the last twelve months, the biggest single purchase by an insider was when Independent Director Hong Fang Song bought US$5.0m worth of shares at a price of US$19.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$36.79. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

CG Oncology insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

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. CG Oncology insiders own 7.0% of the company, currently worth about US$172m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The CG Oncology Insider Transactions Indicate?

It doesn't really mean much that no insider has traded CG Oncology shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like CG Oncology insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for 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. Be aware that CG Oncology is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: CG Oncology may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.