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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Eiger BioPharmaceuticals Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director Eldon Mayer bought US$208k worth of shares at a price of US$10.07 per share. So it's clear an insider wanted to buy, at around the current price, which is US$11.27. 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. Happily, the Eiger BioPharmaceuticals insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders bought 47820 shares for a total of US$498k. In the last twelve months Eiger BioPharmaceuticals insiders were buying shares, but not selling. You can see the insider transactions (by 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!
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).
Insiders at Eiger BioPharmaceuticals Have Bought Stock Recently
It's good to see that Eiger BioPharmaceuticals insiders have made notable investments in the company's shares. In total, insiders bought US$139k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
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. Based on our data, Eiger BioPharmaceuticals insiders have about 1.4% of the stock, worth approximately US$3.9m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Eiger BioPharmaceuticals Tell Us?
It is good to see recent purchasing. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Eiger BioPharmaceuticals insiders are expecting a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Eiger BioPharmaceuticals.
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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.