Investors who take an interest in Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) should definitely note that the Independent Director, Gabrielle Greene-Sulzberger, recently paid US$13.06 per share to buy US$275k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 148%.

See our latest analysis for Cerevel Therapeutics Holdings

The Last 12 Months Of Insider Transactions At Cerevel Therapeutics Holdings

In fact, the recent purchase by Gabrielle Greene-Sulzberger was the biggest purchase of Cerevel Therapeutics Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$12.56 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Gabrielle Greene-Sulzberger.

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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Cerevel Therapeutics Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data suggests Cerevel Therapeutics Holdings insiders own 0.1% of the company, worth about US$1.6m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Cerevel Therapeutics Holdings Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Cerevel Therapeutics Holdings insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cerevel Therapeutics Holdings. Case in point: We've spotted 3 warning signs for Cerevel Therapeutics Holdings you should be aware of, and 1 of these is concerning.

Of course Cerevel Therapeutics Holdings 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.

This article by Simply Wall St is general in nature. 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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