Eiger BioPharmaceuticals Slides As Insider Purchases Lose Another US$81k
The recent 16% drop in Eiger BioPharmaceuticals, Inc.'s (NASDAQ:EIGR) stock could come as a blow to insiders who purchased US$200k worth of stock at an average buy price of US$1.33 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$119k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Eiger BioPharmaceuticals
The Last 12 Months Of Insider Transactions At Eiger BioPharmaceuticals
The Scientific Founder & Independent Director Jeffrey Glenn made the biggest insider purchase in the last 12 months. That single transaction was for US$128k worth of shares at a price of US$1.28 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.79). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 150.00k shares for US$200k. But they sold 31.90k shares for US$37k. In the last twelve months there was more buying than selling by Eiger BioPharmaceuticals insiders. 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!
Eiger BioPharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Eiger BioPharmaceuticals Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 12% of Eiger BioPharmaceuticals shares, worth about US$4.1m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Eiger BioPharmaceuticals Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Eiger BioPharmaceuticals stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Eiger BioPharmaceuticals. At Simply Wall St, we've found that Eiger BioPharmaceuticals has 4 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
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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