Whilst it may not be a huge deal, we thought it was good to see that the Arix Bioscience plc (LON:ARIX) Independent Non-Executive Chairman, Peregrine David Euan Moncreiffe, recently bought UK£77k worth of stock, for UK£1.03 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 14%.

See our latest analysis for Arix Bioscience

Arix Bioscience Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Non-Executive Chairman Peregrine David Euan Moncreiffe was not the only time they bought Arix Bioscience shares this year. They previously made an even bigger purchase of UK£217k worth of shares at a price of UK£1.09 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.06). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Arix Bioscience insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Arix Bioscience 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Arix Bioscience insiders own 5.9% of the company, worth about UK£7.7m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Arix Bioscience Tell Us?

It is good to see recent purchasing. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Arix Bioscience insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Arix Bioscience you should know about.

But note: Arix Bioscience may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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.

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