Insider Spends US$8.0m Buying More Shares In Biohaven

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$8.0m on stock at an average price of US$41.00. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.2%.

Check out our latest analysis for Biohaven

The Last 12 Months Of Insider Transactions At Biohaven

Notably, that recent purchase by Independent Director John Childs was not the only time they bought Biohaven shares this year. They previously made an even bigger purchase of US$10.0m worth of shares at a price of US$22.00 per share. We do like to see buying, but this purchase was made at well below the current price of US$38.54. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Biohaven insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$26.69. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Biohaven

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Biohaven insiders own 13% of the company, worth about US$444m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Biohaven Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Biohaven. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Biohaven. Our analysis shows 3 warning signs for Biohaven (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.

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.