Those following along with CASI Pharmaceuticals, Inc. (NASDAQ:CASI) will no doubt be intrigued by the recent purchase of shares by Wei-Wu He, Chairman & CEO of the company, who spent a stonking US$1.1m on stock at an average price of US$2.03. That increased their holding by a full 63%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
CASI Pharmaceuticals Insider Transactions Over The Last Year
In fact, the recent purchase by Wei-Wu He was the biggest purchase of CASI Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$2.08 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Wei-Wu He.
Wei-Wu He bought a total of 704.49k shares over the year at an average price of US$2.32. You can see the insider transactions (by 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!
CASI Pharmaceuticals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does CASI Pharmaceuticals Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 14% of CASI Pharmaceuticals shares, worth about US$28m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About CASI Pharmaceuticals Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest CASI Pharmaceuticals insiders are well aligned, and that they may think the share price is too low. 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. Be aware that CASI Pharmaceuticals is showing 6 warning signs in our investment analysis, and 2 of those shouldn't be ignored...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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