Even if it's not a huge purchase, we think it was good to see that Steven Gannon, the Independent Director of Fusion Pharmaceuticals Inc. (NASDAQ:FUSN) recently shelled out US$90k to buy stock, at US$2.03 per share. Even though that isn't a massive buy, it did increase their holding by 370%, which is arguably a good sign.
Fusion Pharmaceuticals Insider Transactions Over The Last Year
Notably, that recent purchase by Steven Gannon is the biggest insider purchase of Fusion Pharmaceuticals shares that we've seen in the last year. That implies that an insider found the current price of US$2.14 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Fusion Pharmaceuticals share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Steven Gannon.
Steven Gannon bought 56.40k shares over the last 12 months at an average price of US$3.31. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Fusion Pharmaceuticals Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at Fusion Pharmaceuticals, though insiders do hold about US$830k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
What Might The Insider Transactions At Fusion Pharmaceuticals Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. 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 Fusion Pharmaceuticals 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. To help with this, we've discovered 4 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Fusion Pharmaceuticals.
But note: Fusion Pharmaceuticals 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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