Great news for Cabaletta Bio, Inc. (NASDAQ:CABA): Insiders acquired stock in large numbers last year
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Cabaletta Bio, Inc. (NASDAQ:CABA), that sends out a positive message to the company's shareholders.
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.
View our latest analysis for Cabaletta Bio
The Last 12 Months Of Insider Transactions At Cabaletta Bio
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Steven Nichtberger bought US$141k worth of shares at a price of US$0.99 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.59. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Cabaletta Bio insiders bought shares during the last year, they didn't sell. 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!
Cabaletta Bio is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Cabaletta Bio 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.0% of Cabaletta Bio shares, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Cabaletta Bio Insiders?
It doesn't really mean much that no insider has traded Cabaletta Bio shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Cabaletta Bio and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cabaletta Bio. To that end, you should learn about the 4 warning signs we've spotted with Cabaletta Bio (including 1 which makes us a bit uncomfortable).
But note: Cabaletta Bio 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.
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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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