Insider Buying: The Vincerx Pharma, Inc. (NASDAQ:VINC) Founder Just Bought 2.5% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Vincerx Pharma, Inc. (NASDAQ:VINC) Founder, Raquel Izumi, recently bought US$56k worth of stock, for US$1.41 per share. Although the purchase is not a big one, increasing their shareholding by only 2.5%, it can be interpreted as a good sign.

See our latest analysis for Vincerx Pharma

Vincerx Pharma Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Founder Ahmed Hamdy bought US$65k worth of shares at a price of US$10.02 per share. That means that even when the share price was higher than US$1.32 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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 Vincerx Pharma insiders were buying shares, but not selling. They paid about US$3.00 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Vincerx Pharma insiders own 19% of the company, worth about US$5.3m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Vincerx Pharma Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Vincerx Pharma insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 4 warning signs we've spotted with Vincerx Pharma (including 1 which is concerning).

Of course Vincerx Pharma 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, but not derivative transactions.

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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.