We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Cellectar Biosciences, Inc. (NASDAQ:CLRB), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
Cellectar Biosciences Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Business Officer Jarrod Longcor bought US$75k worth of shares at a price of US$1.15 per share. We do like to see buying, but this purchase was made at well below the current price of US$1.67. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Cellectar Biosciences insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Cellectar Biosciences is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Cellectar Biosciences Insiders Buying Or Selling?
There was some insider buying at Cellectar Biosciences over the last quarter. President James Caruso bought US$8.7k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Insider Ownership of Cellectar Biosciences
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. Our data indicates that Cellectar Biosciences insiders own about US$4.8m worth of shares (which is 5.7% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Cellectar Biosciences Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Cellectar Biosciences stock. 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. At Simply Wall St, we've found that Cellectar Biosciences has 4 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
But note: Cellectar Biosciences 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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.
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