When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Generation Bio Co.'s (NASDAQ:GBIO) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Generation Bio
Notably, that recent purchase by Charles Rowland is the biggest insider purchase of Generation Bio shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$5.53. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Generation Bio share holders is that insiders were buying at near the current price.
In the last twelve months Generation Bio insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Generation Bio is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Generation Bio Insiders Bought Stock Recently
It's good to see that Generation Bio insiders have made notable investments in the company's shares. We can see that Independent Director Charles Rowland paid US$127k for shares in the company. No-one sold. This makes one think the business has some good points.
Insider Ownership Of Generation Bio
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.5% of Generation Bio shares, worth about US$18m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Generation Bio Tell Us?
The recent insider purchase is heartening. 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. Given that insiders also own a fair bit of Generation Bio we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Generation Bio. At Simply Wall St, we've found that Generation Bio has 5 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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