Carl Goldfischer Is The Independent Director of Epizyme, Inc. (NASDAQ:EPZM) And Just Spent US$60k On Shares
Whilst it may not be a huge deal, we thought it was good to see that the Epizyme, Inc. (NASDAQ:EPZM) Independent Director, Carl Goldfischer, recently bought US$60k worth of stock, for US$12.07 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for Epizyme
The Last 12 Months Of Insider Transactions At Epizyme
Over the last year, we can see that the biggest insider purchase was by Independent Chairman David Mott for US$994k worth of shares, at about US$16.03 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$11.79). 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 insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 67.02k shares for US$1.1m. On the other hand they divested 996.00 shares, for US$22k. Overall, Epizyme insiders were net buyers during the last year. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Epizyme Boast High Insider Ownership?
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 Epizyme insiders own 0.3% of the company, worth about US$3.9m. We prefer to see high levels of insider ownership.
So What Do The Epizyme Insider Transactions Indicate?
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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Epizyme insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Epizyme. While conducting our analysis, we found that Epizyme has 2 warning signs and it would be unwise to ignore them.
But note: Epizyme may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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