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Quite a few insiders have dramatically grown their holdings in Humacyte, Inc. (NASDAQ:HUMA) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Humacyte Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Gordon Binder for US$668k worth of shares, at about US$6.78 per share. That means that an insider was happy to buy shares at above the current price of US$1.43. 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. We always take careful note of the price insiders pay when purchasing 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.
In the last twelve months insiders purchased 229.13k shares for US$949k. But insiders sold 64.57k shares worth US$502k. In the last twelve months there was more buying than selling by Humacyte insiders. They paid about US$4.14 on average. These transactions suggest that insiders have considered the current price attractive. 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!
View our latest analysis for Humacyte
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Humacyte Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Humacyte. Overall, six insiders shelled out US$146k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership Of Humacyte
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Humacyte insiders own about US$15m worth of shares. That equates to 6.4% 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.