Erasca, Inc. (NASDAQ:ERAS) shareholders (or potential shareholders) will be happy to see that the Co-Founder, Jonathan Lim, recently bought a whopping US$1.7m worth of stock, at a price of US$1.70. While that only increased their holding size by 3.2%, it is still a big swing by our standards.
See our latest analysis for Erasca
The Last 12 Months Of Insider Transactions At Erasca
In fact, the recent purchase by Co-Founder Jonathan Lim was not their only acquisition of Erasca shares this year. Earlier in the year, they paid US$2.03 per share in a US$2.0m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.87). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Erasca insiders bought shares during the last year, they didn't sell. 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!
Erasca is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Erasca
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. It appears that Erasca insiders own 22% of the company, worth about US$61m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Erasca Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives 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 Erasca insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Erasca has 3 warning signs (and 1 which is concerning) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.