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 before you buy or sell Xeris Pharmaceuticals, Inc. (NASDAQ:XERS), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Xeris Pharmaceuticals
There wasn’t any very large single transaction over the last year, but we can still observe some trading.
In the last twelve months insiders paid US$85k for 8.50k shares purchased. Overall, Xeris Pharmaceuticals insiders were net buyers last year. They paid about US$10.00 on average. This is nice to see since it implies that insiders might see value around current prices (around US$9.26). You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Xeris Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Xeris Pharmaceuticals Have Bought Stock Recently
Over the last quarter, Xeris Pharmaceuticals insiders have spent a meaningful amount on shares. Overall, 3 insiders shelled out US$85k for shares in the company — and none sold. This makes one think the business has some good points.
Insider Ownership of Xeris Pharmaceuticals
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our data indicates that Xeris Pharmaceuticals insiders own about US$9.5m worth of shares (which is 3.8% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Xeris Pharmaceuticals Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Xeris Pharmaceuticals insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Xeris Pharmaceuticals, you should check out this free report on analyst forecasts for the company.
But note: Xeris 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.
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