Insiders at 89bio, Inc. (NASDAQ:ETNB) recouped some losses this week after buying this year, still down US$20k
Insiders who purchased US$53k worth of 89bio, Inc. (NASDAQ:ETNB) shares over the past year recouped some of their losses after price gained 21% last week. However, total losses seen by insiders are still US$20k but in since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for 89bio
The Last 12 Months Of Insider Transactions At 89bio
Over the last year, we can see that the biggest insider purchase was by CEO & Director Rohan Palekar for US$53k worth of shares, at about US$7.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.35). 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Rohan Palekar was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
89bio 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 89bio Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data isn't picking up on much insider ownership at 89bio, though insiders do hold about US$846k worth of shares. We might be missing something but that seems like very low insider ownership.
So What Does This Data Suggest About 89bio Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think 89bio insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 89bio. Be aware that 89bio is showing 5 warning signs in our investment analysis, and 3 of those can't be ignored...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
