Reversal Of Fortune For Cartesian Therapeutics Insiders Who Made A US$16.1m Purchase

Insiders who bought US$16.1m worth of Cartesian Therapeutics, Inc. (NASDAQ:RNAC) stock in the last year recovered part of their losses as the stock rose by 15% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$5.0m.

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.

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Cartesian Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Director Timothy Springer for US$7.4m worth of shares, at about US$18.42 per share. That means that an insider was happy to buy shares at above the current price of US$11.46. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

In the last twelve months insiders purchased 965.27k shares for US$16m. On the other hand they divested 36.36k shares, for US$610k. Overall, Cartesian Therapeutics 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Cartesian Therapeutics

Cartesian 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 Cartesian Therapeutics Have Bought Stock Recently

Over the last quarter, Cartesian Therapeutics insiders have spent a meaningful amount on shares. Director Timothy Springer spent US$1.5m on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Cartesian Therapeutics insiders own 58% of the company, worth about US$163m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Cartesian Therapeutics Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Cartesian Therapeutics. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 5 warning signs for Cartesian Therapeutics (3 are potentially serious!) and we strongly recommend you look at these before investing.

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.