Tectonic Therapeutic Loses US$152m Market Value But Insiders See Windfall Of US$72k
Insiders who purchased Tectonic Therapeutic, Inc. (NASDAQ:TECX) shares in the past 12 months are unlikely to be deeply impacted by the stock's 21% decline over the past week. Even after accounting for the recent loss, the US$182.4k worth of stock purchased by them is now worth US$254.5k or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Tectonic Therapeutic
The Chief Financial Officer Daniel Lochner made the biggest insider purchase in the last 12 months. That single transaction was for US$130k worth of shares at a price of US$21.61 each. Even though the purchase was made at a significantly lower price than the recent price (US$29.94), 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 Tectonic Therapeutic 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Tectonic Therapeutic
Tectonic Therapeutic is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Tectonic Therapeutic
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Tectonic Therapeutic insiders own about US$192m worth of shares (which is 33% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Tectonic Therapeutic Insiders?
The fact that there have been no Tectonic Therapeutic insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Tectonic Therapeutic insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tectonic Therapeutic. Every company has risks, and we've spotted 3 warning signs for Tectonic Therapeutic (of which 2 are potentially serious!) you should know about.
Of course Tectonic Therapeutic 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.