Potential Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR) shareholders may wish to note that the Founder, Jeffrey Glenn, recently bought US$151k worth of stock, paying US$5.03 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 16%.
Eiger BioPharmaceuticals Insider Transactions Over The Last Year
Notably, that recent purchase by Jeffrey Glenn is the biggest insider purchase of Eiger BioPharmaceuticals shares that we've seen in the last year. That implies that an insider found the current price of US$5.64 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Eiger BioPharmaceuticals insiders were buying shares, but not selling. They paid about US$7.38 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by 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!
Eiger BioPharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Based on our data, Eiger BioPharmaceuticals insiders have about 1.3% of the stock, worth approximately US$1.8m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Eiger BioPharmaceuticals Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss 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 Eiger BioPharmaceuticals insiders are reasonably well aligned, and optimistic for the future. 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. To help with this, we've discovered 3 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Eiger BioPharmaceuticals.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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