Krishna Vaddi Buys Handful Of Shares In Prelude Therapeutics \
Whilst it may not be a huge deal, we thought it was good to see that the Prelude Therapeutics Incorporated (NASDAQ:PRLD) Founder, Krishna Vaddi, recently bought US$67k worth of stock, for US$5.63 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for Prelude Therapeutics
The Last 12 Months Of Insider Transactions At Prelude Therapeutics
In fact, the recent purchase by Founder Krishna Vaddi was not their only acquisition of Prelude Therapeutics shares this year. They previously made an even bigger purchase of US$98k worth of shares at a price of US$5.13 per share. So it's clear an insider wanted to buy, at around the current price, which is US$5.53. 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 Prelude Therapeutics share holders is that insiders were buying at near the current price.
While Prelude Therapeutics insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Prelude Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Prelude Therapeutics insiders own about US$18m worth of shares. That equates to 4.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Prelude Therapeutics Insider Transactions Indicate?
The recent insider purchases are 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. When combined with notable insider ownership, these factors suggest Prelude Therapeutics insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Prelude Therapeutics (1 is significant!) and we strongly recommend you look at these before investing.
But note: Prelude Therapeutics 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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