The Independent Director of Better Therapeutics, Inc. (NASDAQ:BTTX), Andrew Armanino, Just Bought 40% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Better Therapeutics, Inc. (NASDAQ:BTTX) Independent Director, Andrew Armanino, recently bought US$86k worth of stock, for US$2.14 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 40%.

Check out our latest analysis for Better Therapeutics

The Last 12 Months Of Insider Transactions At Better Therapeutics

Over the last year, we can see that the biggest insider purchase was by Co-Founder & Executive Chairman David Perry for US$2.5m worth of shares, at about US$10.00 per share. That means that an insider was happy to buy shares at above the current price of US$1.97. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Better Therapeutics insiders bought shares during the last year, they didn't sell. Their average price was about US$7.98. I'd consider this a positive as it suggests insiders see value at around the current 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!

Better Therapeutics is not the only stock that insiders are buying. 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 of Better Therapeutics

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Better Therapeutics insiders own about US$28m worth of shares (which is 61% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Better Therapeutics Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Better Therapeutics. That's what I like to see! While we like knowing 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. For instance, we've identified 5 warning signs for Better Therapeutics (2 can't be ignored) you should be aware of.

Of course Better 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.