Erasca, Inc. (NASDAQ:ERAS) shareholders (or potential shareholders) will be happy to see that the Co-Founder, Jonathan Lim, recently bought a whopping US$2.0m worth of stock, at a price of US$2.03. While that only increased their holding size by 3.3%, it is still a big swing by our standards.

See our latest analysis for Erasca

Erasca Insider Transactions Over The Last Year

In fact, the recent purchase by Jonathan Lim was the biggest purchase of Erasca shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$2.31. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Erasca insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$2.41. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Erasca 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 Erasca

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. Erasca insiders own about US$74m worth of shares. That equates to 21% of the company. 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 Erasca Tell Us?

It's certainly positive 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. Insiders likely see value in Erasca shares, given these transactions (along with notable insider ownership of the company). 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. Be aware that Erasca is showing 3 warning signs in our investment analysis, and 1 of those is a bit unpleasant...