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Insiders who bought Insmed Incorporated (NASDAQ:INSM) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$211m as a result of the stock's 5.7% gain over the same period. In other words, the original US$831k purchase is now worth US$885k.
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.
Insmed Insider Transactions Over The Last Year
In fact, the recent purchase by Steinar Engelsen was the biggest purchase of Insmed shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$32.83. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Insmed share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 26.95k shares for US$831k. On the other hand they divested 8.00k shares, for US$312k. Overall, Insmed insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insmed Insiders Bought Stock Recently
It's good to see that Insmed insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$731k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Insmed Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insmed insiders own about US$34m worth of shares. That equates to 0.9% 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.
So What Does This Data Suggest About Insmed Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Insmed 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. At Simply Wall St, we found 3 warning signs for Insmed that deserve your attention before buying any shares.
Of course Insmed 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. 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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