A number of insiders bought Inozyme Pharma, Inc. (NASDAQ:INZY) stock last year, which is great news for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Inozyme Pharma, Inc.'s (NASDAQ:INZY) case, it's fantastic 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.
View our latest analysis for Inozyme Pharma
The Last 12 Months Of Insider Transactions At Inozyme Pharma
Over the last year, we can see that the biggest insider purchase was by Co-Founder Axel Bolte for US$250k worth of shares, at about US$3.69 per share. Even though the purchase was made at a significantly lower price than the recent price (US$5.56), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Inozyme Pharma 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!
Inozyme Pharma is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Inozyme Pharma Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$3.3m worth of Inozyme Pharma stock, about 1.4% of the company. I generally like to see higher levels of ownership.
So What Do The Inozyme Pharma Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Inozyme Pharma shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Inozyme Pharma insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for Inozyme Pharma (of which 3 are potentially serious!) you should know about.
But note: Inozyme Pharma 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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