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Insider Buying: The Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR) Founder Just Bought 4.7% More Shares

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Simply Wall St
·3 min read
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Potential Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR) shareholders may wish to note that the Founder, Jeffrey Glenn, recently bought US$115k worth of stock, paying US$11.46 for each share. Although the purchase only increased their holding by 4.7%, it is still a solid purchase in our view.

View our latest analysis for Eiger BioPharmaceuticals

The Last 12 Months Of Insider Transactions At Eiger BioPharmaceuticals

In fact, the recent purchase by Founder Jeffrey Glenn was not their only acquisition of Eiger BioPharmaceuticals shares this year. Earlier in the year, they paid US$5.03 per share in a US$151k purchase. Even though the purchase was made at a significantly lower price than the recent price (US$11.29), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Eiger BioPharmaceuticals insiders were buying shares, but not selling. The average buy price was around US$7.25. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

Eiger BioPharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Eiger BioPharmaceuticals 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. We usually like to see fairly high levels of insider ownership. Our data suggests Eiger BioPharmaceuticals insiders own 1.3% of the company, worth about US$4.5m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Eiger BioPharmaceuticals Insiders?

It is good 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 Eiger BioPharmaceuticals insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Eiger BioPharmaceuticals you should be aware of.

But note: Eiger BioPharmaceuticals 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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.