Insiders who bought Quantum-Si incorporated (NASDAQ:QSI) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$87m as a result of the stock's 78% gain over the same period. As a result, their original purchase of US$376.7k worth of stock is now worth US$493.5k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

The Last 12 Months Of Insider Transactions At Quantum-Si

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman Charles Kummeth bought US$148k worth of shares at a price of US$0.89 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.39. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 355.00k shares for US$377k. But they sold 11.84k shares for US$13k. In total, Quantum-Si insiders bought more than they sold over the last year. The average buy price was around US$1.06. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Have Quantum-Si Insiders Traded Recently?

In the last three months, Chief Product Officer John Vieceli sold US$4.0k worth of shares. That's not much at all. Ultimately the overall selling isn't enough to tell us much.

Does Quantum-Si Boast High 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. It appears that Quantum-Si insiders own 28% of the company, worth about US$55m. 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 Do The Quantum-Si Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Quantum-Si and their transactions don't cause us concern. While it's good to be aware of 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 3 warning signs we've spotted with Quantum-Si (including 1 which doesn't sit too well with us).

Of course Quantum-Si 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.