Having purchased US$1.8m worth of Aeglea BioTherapeutics, Inc. (NASDAQ:AGLE) stock, the recent 53% pullback is not what insiders may have expected
Insiders who bought US$1.8m worth of Aeglea BioTherapeutics, Inc.'s (NASDAQ:AGLE) stock at an average buy price of US$3.07 over the last year may be disappointed by the recent 53% decrease in the stock. 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$416k which is not ideal.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Aeglea BioTherapeutics
Aeglea BioTherapeutics Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Armen Shanafelt bought US$550k worth of shares at a price of US$3.67 per share. That means that an insider was happy to buy shares at above the current price of US$0.70. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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.
While Aeglea BioTherapeutics insiders bought shares during the last year, they didn't sell. The average buy price was around US$3.07. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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.
Aeglea BioTherapeutics Insiders Bought Stock Recently
Over the last quarter, Aeglea BioTherapeutics insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$625k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Aeglea BioTherapeutics insiders have about 2.0% of the stock, worth approximately US$859k. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Aeglea BioTherapeutics Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Aeglea BioTherapeutics 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. Our analysis shows 6 warning signs for Aeglea BioTherapeutics (2 are a bit unpleasant!) and we strongly recommend you look at them before investing.
Of course Aeglea BioTherapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
