Jasper Therapeutics Slides As Insider Purchases Lose Another US$89k

Insiders who acquired US$347.5k worth of Jasper Therapeutics, Inc.'s (NASDAQ:JSPR) stock at an average price of US$2.43 in the past 12 months may be dismayed by the recent 23% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$258.8k, which is not great.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Jasper Therapeutics Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President Ronald Martell bought US$100k worth of shares at a price of US$2.43 per share. That means that an insider was happy to buy shares at above the current price of US$1.81. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Jasper Therapeutics insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Jasper Therapeutics

Jasper Therapeutics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Jasper Therapeutics Have Bought Stock Recently

Over the last quarter, Jasper Therapeutics insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$347k worth of shares. This could be interpreted as suggesting a positive outlook.

Does Jasper Therapeutics Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Jasper Therapeutics insiders own 1.2% of the company, worth about US$700k. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Jasper Therapeutics Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Jasper Therapeutics insiders are expecting a bright 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. To help with this, we've discovered 4 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Jasper Therapeutics.

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.