Insider Buying: Braden Leonard Just Spent US$75k On Gemini Therapeutics, Inc. (NASDAQ:GMTX) Shares
Even if it's not a huge purchase, we think it was good to see that Braden Leonard, a Gemini Therapeutics, Inc. (NASDAQ:GMTX) insider, recently shelled out US$75k to buy stock, at US$1.37 per share. That purchase might not be huge but it did increase their holding by 26%.
View our latest analysis for Gemini Therapeutics
The Last 12 Months Of Insider Transactions At Gemini Therapeutics
The Jason Meyenburg made the biggest insider purchase in the last 12 months. That single transaction was for US$123k worth of shares at a price of US$9.46 each. That means that even when the share price was higher than US$1.55 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for 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.
Gemini Therapeutics insiders may have bought shares in the last year, but they didn't sell any. They paid about US$3.57 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Gemini Therapeutics 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 Gemini Therapeutics 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From what we can see in our data, insiders own only about US$456k worth of Gemini Therapeutics shares. We might be missing something but that seems like very low insider ownership.
So What Does This Data Suggest About Gemini Therapeutics Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. 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 Gemini Therapeutics stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 4 warning signs for Gemini Therapeutics (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.
But note: Gemini Therapeutics 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
