Trade Alert: The Chairman of the Board Of BELLUS Health Inc. (TSE:BLU), Francesco Bellini, Has Just Spent US$390k Buying 31% More Shares

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Investors who take an interest in BELLUS Health Inc. (TSE:BLU) should definitely note that the Chairman of the Board, Francesco Bellini, recently paid CA$3.67 per share to buy CA$390k worth of the stock. That’s a very solid buy in our book, and increased their holding by a noteworthy 31%.” data-reactid=”19″>Investors who take an interest in BELLUS Health Inc. (TSE:BLU) should definitely note that the Chairman of the Board, Francesco Bellini, recently paid CA$3.67 per share to buy CA$390k worth of the stock. That’s a very solid buy in our book, and increased their holding by a noteworthy 31%.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" View our latest analysis for BELLUS Health ” data-reactid=”20″> View our latest analysis for BELLUS Health

The Last 12 Months Of Insider Transactions At BELLUS Health

In fact, the recent purchase by Chairman of the Board Francesco Bellini was not their only acquisition of BELLUS Health shares this year. They previously made an even bigger purchase of CA$1.3m worth of shares at a price of CA$9.34 per share. That means that even when the share price was higher than CA$4.00 (the recent price), an insider wanted to purchase shares. 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. 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 BELLUS Health insiders were buying shares, but not selling. Their average price was about CA$7.13. I’d consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

TSX:BLU Insider Trading Volume July 9th 2020TSX:BLU Insider Trading Volume July 9th 2020
TSX:BLU Insider Trading Volume July 9th 2020

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="BELLUS Health is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.” data-reactid=”36″>BELLUS Health is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does BELLUS Health Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 2.8% of BELLUS Health shares, worth about CA$7.4m, according to our data. But they may have an indirect interest through a corporate structure that we haven’t picked up on. Whilst better than nothing, we’re not overly impressed by these holdings.

What Might The Insider Transactions At BELLUS Health Tell Us?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that BELLUS Health insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BELLUS Health. When we did our research, we found 5 warning signs for BELLUS Health (2 don’t sit too well with us!) that we believe deserve your full attention.” data-reactid=”40″>The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that BELLUS Health insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing BELLUS Health. When we did our research, we found 5 warning signs for BELLUS Health (2 don’t sit too well with us!) that we believe deserve your full attention.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Of course BELLUS Health may not be the best stock to buy. So you may wish to see this free collection of high quality companies.” data-reactid=”41″>Of course BELLUS Health may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="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.” data-reactid=”42″>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.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.” data-reactid=”43″>This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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