Quite a few insiders invested in Thorne HealthTech, Inc. (NASDAQ:THRN) last year which is positive news for shareholders

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Thorne HealthTech, Inc.'s (NASDAQ:THRN) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Thorne HealthTech

Thorne HealthTech Insider Transactions Over The Last Year

The Independent Director Saloni Varma made the biggest insider purchase in the last 12 months. That single transaction was for US$55k worth of shares at a price of US$6.01 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.64). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

While Thorne HealthTech insiders bought shares during the last year, they didn't sell. Their average price was about US$6.72. This is nice to see since it implies that insiders might see value around current prices. 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!

Thorne HealthTech 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 Thorne HealthTech

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. We usually like to see fairly high levels of insider ownership. Insiders own 7.3% of Thorne HealthTech shares, worth about US$22m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Thorne HealthTech Tell Us?

It doesn't really mean much that no insider has traded Thorne HealthTech shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Thorne HealthTech and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Thorne HealthTech 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, 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.

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