Looking for companies that have bullish management teams is a great strategy for long-term investors. Finding companies that are driven by individuals with a long-term positive outlook for the company they are running just makes one sleep better at night. When such insiders not only hold onto the options they receive, but buy more shares in the open market, a specific bullish signal is sent to shareholders and potential investors alike.
One such company (which I don’t feature often) is Canadian biopharmaceuticals player Aurinia Pharmaceuticals Inc. (TSX:AUP). This company’s chairman recently made a purchase of the company’s stock in excess of $260,000. This large purchase is both substantial and symbolic of the optimism it appears the company’s management team has about the future prospects of biopharma in general, as well as the position Aurinia is in relative to its peers.
This is a company I would encourage readers to do their homework on and dive a little deeper into, to ensure this stock fits within one’s risk preference range, but is an interesting growth play today.
As always, please remember to consult with a certified financial advisor into your own homework before making investing decisions. Insider buying and selling activity is not necessarily indicative of the future performance of a given company’s stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance.
Analyzing insider transactions in a given stock is one tool of many to gain pertinent information to assist in investment decision making.
Invest wisely, my friends.
