Quantum-Si Insider Confidence Rewarded, Stock Hits US$316m Market Cap

Quantum-Si incorporated (NASDAQ:QSI) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 21% resulting in a US$54m addition to the company’s market value. As a result, their original purchase of US$115.9k worth of stock is now worth US$156.1k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Quantum-Si

The Last 12 Months Of Insider Transactions At Quantum-Si

Notably, that recent purchase by Jeffry Keyes is the biggest insider purchase of Quantum-Si shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$2.23), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Quantum-Si 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Quantum-Si is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Quantum-Si Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Quantum-Si. Specifically, CFO & Treasurer Jeffry Keyes bought US$81k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership Of Quantum-Si

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Quantum-Si insiders own 27% of the company, worth about US$87m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Quantum-Si Insiders?

The recent insider purchase is heartening. 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. Given that insiders also own a fair bit of Quantum-Si we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Quantum-Si you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.