One indicator of where a company’s stock might be going in the future can be understood by what insiders may be thinking of the Company’s current stock price and near-term future outlook. Insiders are considered C-Suite Executives, a member of the Board of Directors, and anyone (person or company) that owns over >10.0% of a Company’s outstanding shares.
When Insiders are buying, that is a possible clue about what the people who know the company the best are feeling about the price today versus the future news flow or operating performance over the next couple of quarters. Cheap Stock prices and Exciting News sometimes equal Insider Buying.
Insider Buying at Blue Star Foods Corp. (NASDAQ:BSFC)
Since July 2022, according to SEC Reports, specifically a search of parties filing Form 4s, 3 of the independent directors of Blue Star Foods Corp. (NASDAQ:BSFC) have executed open market transaction buying of common stock, of which 2 of those directors bought shares within the last 2 weeks. That’s almost half (3 out of 7) of the board of directors buying shares in the company.
Why is Insider Buying an important indicator?
In the last 30 days, of the 6,625 public companies on the NYSE, NASDAQ, and NYSE American, only 227 filed SEC Form 4s for only the purpose of indicating open market buying of shares by insiders.
There are several companies like IMARA Inc. (NASDAQ:IMRA), Cabaletta Bio, Inc. (NASDAQ:CABA), Tango Therapeutics, Inc. (NASDAQGM:TNGX), DICE Therapeutics, Inc. (NASDAQGM:DICE), MacroGenics, Inc. (NASDAQ:MGNX), Texas Pacific Land Corporation (NYSE:TPL), ESSA Pharma Inc. (NasdaqCM: EPIX), Mayville Engineering Company, Inc. (NYSE:MEC), Jupiter Wellness, Inc. (NasdaqCM: JUPW), and Riley Exploration Permian, Inc. (NYSEAM:REPX) that are up over 30% over the last 60 days, possibly as a result of insider buying.
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SEC Form S4 Insider Buying and Stock Market Performance (last 30 days) as of 11/8/2022 |
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|
Company Name |
Transaction Type |
Market Cap |
Market Cap |
Performance |
Industry |
Sub-Sector |
|
Stock Symbol |
Last 30 days |
9/7/2022 |
11/7/2022 |
Last 60 days |
Group |
Classification |
|
IMARA Inc. (NASDAQ:IMRA) |
Insider Buying |
$52.8 |
$117.2 |
+121.9% |
Healthcare |
Pharmaceuticals |
|
Cabaletta Bio, Inc. (NASDAQ:CABA) |
Insider Buying |
$29.3 |
$63.3 |
+115.8% |
Healthcare |
Biotechnology |
|
Tango Therapeutics, Inc. (NASDAQ:TNGX) |
Insider Buying |
$316.8 |
$683.4 |
+115.7% |
Healthcare |
Biotechnology |
|
DICE Therapeutics, Inc. (NASDAQ:DICE) |
Insider Buying |
$803.2 |
$1,441.2 |
+79.4% |
Healthcare |
Pharmaceuticals |
|
MacroGenics, Inc. (NASDAQ:MGNX) |
Insider Buying |
$260.0 |
$394.7 |
+51.8% |
Healthcare |
Biotechnology |
|
Texas Pacific Land Corporation (NYSE:TPL) |
Insider Buying |
$14,166.6 |
$20,918.2 |
+47.7% |
Energy |
Oil and Gas E&P |
|
ESSA Pharma Inc. (NASDAQ:EPIX) |
Insider Buying |
$102.2 |
$144.6 |
+41.4% |
Healthcare |
Biotechnology |
|
Mayville Engineering Company (NYSE:MEC) |
Insider Buying |
$140.6 |
$195.5 |
+39.0% |
Industrials |
Machinery |
|
Jupiter Wellness, Inc. (NASDAQ:JUPW) |
Insider Buying |
$16.9 |
$23.2 |
+37.3% |
Staples |
Personal Products |
|
Riley Exploration Permian (NYSEAM:REPX) |
Insider Buying |
$471.6 |
$633.9 |
+34.4% |
Energy |
Oil and Gas E&P |
Source: S&P Capital IQ (as of 11/8/2022)
All Market Caps in Millions of USD
Many of these companies have not had any major investments from strategic institutions, or a major news development. Some of the upward performance could be attributed to the market taking Insider Buying as a Buy indicator to get involved.
How could this affect Blue Star?
As of November 8th, 2022, the Company trades at $0.90 per share, which is up from the 52-week low of $0.61 cents a share. In the meantime, the Company has just had its first major Investment Bank sponsored Equity Research from Roth Capital which initiated with a $3.00 stock price - https://www.benzinga.com/news/22/11/29543588/roth-capital-initiates-coverage-on-blue-star-foods-with-buy-rating-announces-price-target-of-3 — this does not mean that the stock will be going up for sure, but traders may want to keep their eyes on indicators like this and see what happens next.
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