Independent Director Michael Hayden Just Bought 41% More Shares In 89bio, Inc. (NASDAQ:ETNB)
89bio, Inc. (NASDAQ:ETNB) shareholders (or potential shareholders) will be happy to see that the Independent Director, Michael Hayden, recently bought a whopping US$1.0m worth of stock, at a price of US$14.27. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 41%.
Check out our latest analysis for 89bio
The Last 12 Months Of Insider Transactions At 89bio
Notably, that recent purchase by Michael Hayden is the biggest insider purchase of 89bio shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$15.23). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Michael Hayden was the only individual insider to buy shares in the last twelve months.
Michael Hayden purchased 87.79k shares over the year. The average price per share was US$12.28. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Of 89bio
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 0.5% of 89bio shares, worth about US$5.4m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The 89bio Insider Transactions Indicate?
It's certainly positive 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that 89bio insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for 89bio you should be aware of, and 3 of them are a bit concerning.
But note: 89bio 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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