Investors who take an interest in Erasca, Inc. (NASDAQ:ERAS) should definitely note that the Independent Director, Alexander Casdin, recently paid US$2.27 per share to buy US$182k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 14%.
The Last 12 Months Of Insider Transactions At Erasca
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Jonathan Lim bought US$2.0m worth of shares at a price of US$2.03 per share. Even though the purchase was made at a significantly lower price than the recent price (US$2.44), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Erasca 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Erasca
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Erasca insiders own about US$83m worth of shares. That equates to 12% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Erasca Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Erasca insiders are well aligned, and that they may think the share price is too low. While we like knowing 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. For example, Erasca has 4 warning signs (and 3 which don't sit too well with us) we think you should know about.
Of course Erasca 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 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.