Bullish Cardiff Oncology Insiders Rewarded As Their Investment Rises To US$1.81m

Last week, Cardiff Oncology, Inc. (NASDAQ:CRDF) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10% last week, resulting in a US$29m increase in the company's market worth, implying a 79% gain on their initial purchase. As a result, the stock they originally bought for US$1.01m is now worth US$1.81m.

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 Cardiff Oncology

Cardiff Oncology Insider Transactions Over The Last Year

The Independent Director Gary Pace made the biggest insider purchase in the last 12 months. That single transaction was for US$940k worth of shares at a price of US$2.60 each. We do like to see buying, but this purchase was made at well below the current price of US$4.78. 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.

While Cardiff Oncology 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insiders At Cardiff Oncology Have Bought Stock Recently

Over the last quarter, Cardiff Oncology insiders have spent a meaningful amount on shares. In total, insiders bought US$1.0m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Does Cardiff Oncology Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Cardiff Oncology insiders own 2.0% of the company, worth about US$5.7m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Cardiff Oncology Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Cardiff Oncology stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Cardiff Oncology has 5 warning signs (and 4 which are a bit concerning) we think you should know about.

But note: Cardiff 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.