Even if it's not a huge purchase, we think it was good to see that Fang Ni, the CFO, Principal Financial Officer and Chief Business Officer of Black Diamond Therapeutics, Inc. (NASDAQ:BDTX) recently shelled out US$61k to buy stock, at US$2.44 per share. Even though that isn't a massive buy, it did increase their holding by 57%, which is arguably a good sign.
View our latest analysis for Black Diamond Therapeutics
Black Diamond Therapeutics Insider Transactions Over The Last Year
In fact, the recent purchase by Fang Ni was the biggest purchase of Black Diamond Therapeutics shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$2.62 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Black Diamond Therapeutics insider decided to buy shares at close to current prices. Fang Ni was the only individual insider to buy during the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Black Diamond Therapeutics
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. Based on our data, Black Diamond Therapeutics insiders have about 3.5% of the stock, worth approximately US$3.3m. We prefer to see high levels of insider ownership.
So What Do The Black Diamond Therapeutics Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Black Diamond Therapeutics stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 5 warning signs we've spotted with Black Diamond Therapeutics (including 2 which are potentially serious).
Of course Black Diamond 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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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.