Cue Biopharma, Inc. (NASDAQ:CUE) drops to US$91m and insiders who purchased earlier this year lose another US$33k
Insiders who bought US$105k worth of Cue Biopharma, Inc.'s (NASDAQ:CUE) stock at an average buy price of US$3.75 over the last year may be disappointed by the recent 16% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$72k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Cue Biopharma
The Last 12 Months Of Insider Transactions At Cue Biopharma
The Independent Chairman of the Board Frank Morich made the biggest insider purchase in the last 12 months. That single transaction was for US$105k worth of shares at a price of US$3.75 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.57). 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Frank Morich.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Insider Ownership
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Cue Biopharma insiders have about 3.4% of the stock, worth approximately US$3.1m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Cue Biopharma Tell Us?
The fact that there have been no Cue Biopharma insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Cue Biopharma stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Cue Biopharma 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.
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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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