The Chairman of Editas Medicine, Inc. (NASDAQ:EDIT), James Mullen, Just Bought 250% More Shares
Those following along with Editas Medicine, Inc. (NASDAQ:EDIT) will no doubt be intrigued by the recent purchase of shares by James Mullen, Chairman of the company, who spent a stonking US$1.2m on stock at an average price of US$46.27. That purchase boosted their holding by 250%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
View our latest analysis for Editas Medicine
The Last 12 Months Of Insider Transactions At Editas Medicine
Notably, that recent purchase by James Mullen is the biggest insider purchase of Editas Medicine shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$40.36. 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 encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was James Mullen.
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!
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 Editas Medicine
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. Insiders own 1.2% of Editas Medicine shares, worth about US$34m. 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 Editas Medicine Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Editas Medicine insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Editas Medicine has 4 warning signs we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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