Bullish insiders at Gossamer Bio, Inc. (NASDAQ:GOSS) loaded up on US$1.2m of stock earlier this year
In the last year, multiple insiders have substantially increased their holdings of Gossamer Bio, Inc. (NASDAQ:GOSS) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Gossamer Bio
The Last 12 Months Of Insider Transactions At Gossamer Bio
Over the last year, we can see that the biggest insider purchase was by Co-Founder Faheem Hasnain for US$1m worth of shares, at about US$7.21 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.90). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Faheem Hasnain was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 166.43k shares for US$1.2m. But insiders sold 84.28k shares worth US$774k. In the last twelve months there was more buying than selling by Gossamer Bio insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Gossamer Bio is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Gossamer Bio Have Sold Stock Recently
The last three months saw significant insider selling at Gossamer Bio. In total, insiders sold US$174k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Gossamer Bio
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Gossamer Bio insiders own about US$16m worth of shares. That equates to 9.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Gossamer Bio Tell Us?
Insiders sold Gossamer Bio shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gossamer Bio. For instance, we've identified 5 warning signs for Gossamer Bio (2 shouldn't be ignored) you should be aware of.
Of course Gossamer Bio 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.
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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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