Independent Director of Biohaven John Childs Buys More Stock

Those following along with Biohaven Ltd. (NYSE:BHVN) will no doubt be intrigued by the recent purchase of shares by John Childs, Independent Director of the company, who spent a stonking US$892k on stock at an average price of US$30.44. While that only increased their holding size by 0.5%, it is still a big swing by our standards.

Check out our latest analysis for Biohaven

The Last 12 Months Of Insider Transactions At Biohaven

Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Vladimir Coric for US$5.0m worth of shares, at about US$41.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$29.86). 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. To us, it's very important to consider the price insiders pay for 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.

While Biohaven insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership Of Biohaven

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Biohaven insiders own 12% of the company, worth about US$352m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Biohaven Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Biohaven insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Biohaven has 4 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

But note: Biohaven may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.