Potential Quantum-Si incorporated (NASDAQ:QSI) shareholders may wish to note that the Independent Chairman, Charles Kummeth, recently bought US$148k worth of stock, paying US$0.87 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 92%.
Quantum-Si Insider Transactions Over The Last Year
In fact, the recent purchase by Charles Kummeth was the biggest purchase of Quantum-Si shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$0.88. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.
Happily, we note that in the last year insiders paid US$377k for 355.00k shares. But insiders sold 7.53k shares worth US$9.1k. In total, Quantum-Si insiders bought more than they sold over the last year. Their average price was about US$1.06. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insider Ownership Of Quantum-Si
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 28% of Quantum-Si shares, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Quantum-Si Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Quantum-Si insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Quantum-Si. Our analysis shows 3 warning signs for Quantum-Si (1 is significant!) and we strongly recommend you look at them before investing.
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.