Despite Hitting US$2.40, Century Therapeutics Insiders Still Sold Too Soon

Century Therapeutics, Inc.'s (NASDAQ:IPSC) stock price has dropped 11% in the previous week, but insiders who sold US$55k in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$3.55 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Century Therapeutics

Century Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Luis Borges, for US$55k worth of shares, at about US$3.55 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$2.40). So it may not tell us anything about how insiders feel about the current share price. Luis Borges was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

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. Insiders own 5.1% of Century Therapeutics shares, worth about US$7.3m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Century Therapeutics Tell Us?

It doesn't really mean much that no insider has traded Century Therapeutics shares in the last quarter. The insider transactions at Century Therapeutics are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Century Therapeutics (2 are significant!) and we strongly recommend you look at them before investing.

Of course Century Therapeutics 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.