Humacyte Insiders Added US$747.6k Of Stock To Their Holdings

Multiple insiders secured a larger position in Humacyte, Inc. (NASDAQ:HUMA) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Humacyte

The Last 12 Months Of Insider Transactions At Humacyte

In the last twelve months, the biggest single purchase by an insider was when insider Gordon Binder bought US$668k worth of shares at a price of US$6.78 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.45). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 112.42k shares for US$748k. On the other hand they divested 64.57k shares, for US$502k. Overall, Humacyte insiders were net buyers during the last year. 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!

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

Humacyte Insiders Bought Stock Recently

There has been significantly more insider buying, than selling, at Humacyte, over the last three months. In fact, three insiders bought US$748k worth of shares. On the other hand, Chief Operating Officer Heather Prichard netted US$502k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does Humacyte 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 10.0% of Humacyte shares, worth about US$68m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Humacyte Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Humacyte insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Humacyte has 4 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.

Of course Humacyte may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.

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