Possible turnaround for Alaunos Therapeutics, Inc. (NASDAQ:TCRT) insiders, still down US$300k after a US$639k shopping spree

February 28, 2022
  •  Updated
June 16, 2022
NasdaqGS:TCRT
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Some of the losses seen by insiders who purchased US$639k worth of Alaunos Therapeutics, Inc. (NASDAQ:TCRT) shares over the past year were recovered after the stock increased by 13% over the past week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$300k since the time of purchase.

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 Alaunos Therapeutics

The Last 12 Months Of Insider Transactions At Alaunos Therapeutics

The insider Jaime Vieser made the biggest insider purchase in the last 12 months. That single transaction was for US$191k worth of shares at a price of US$1.91 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.94). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

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

insider-trading-volume
NasdaqGS:TCRT Insider Trading Volume February 28th 2022

Alaunos Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Alaunos Therapeutics

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 6.6% of Alaunos Therapeutics shares, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Alaunos Therapeutics Insiders?

It doesn't really mean much that no insider has traded Alaunos Therapeutics shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Alaunos Therapeutics and we see no evidence to suggest they are worried about the 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. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Alaunos Therapeutics.

Of course Alaunos Therapeutics 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, but not derivative transactions.

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