ImmuCell Insider Confidence Rewarded, Stock Hits US$96m Market Cap
ImmuCell Corporation (NASDAQ:ICCC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a US$11m addition to the company’s market value. Put another way, the original US$141.1k acquisition is now worth US$240.6k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At ImmuCell
Over the last year, we can see that the biggest insider purchase was by President Paul F. Te Boekhorst for US$76k worth of shares, at about US$9.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.46. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months ImmuCell insiders were buying shares, but not selling. Their average price was about US$6.72. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for ImmuCell
ImmuCell is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
ImmuCell Insiders Bought Stock Recently
It's good to see that ImmuCell insiders have made notable investments in the company's shares. President Paul F. Te Boekhorst spent US$76k on stock, and there wasn't any selling. This makes one think the business has some good points.
Insider Ownership
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that ImmuCell insiders own 28% of the company, worth about US$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At ImmuCell Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of ImmuCell we think they are probably pretty confident of a bright future. 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. You'd be interested to know, that we found 1 warning sign for ImmuCell and we suggest you have a look.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.