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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Sio Gene Therapies Inc.'s (NASDAQ:SIOX) 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.
Sio Gene Therapies Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Pavan Cheruvu bought US$248k worth of shares at a price of US$2.48 per share. That means that even when the share price was higher than US$2.19 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Sio Gene Therapies 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!
Sio Gene Therapies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Sio Gene Therapies
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. Our data isn't picking up on much insider ownership at Sio Gene Therapies, though insiders do hold about US$620k worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
What Might The Insider Transactions At Sio Gene Therapies Tell Us?
It doesn't really mean much that no insider has traded Sio Gene Therapies shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Sio Gene Therapies insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sio Gene Therapies. When we did our research, we found 5 warning signs for Sio Gene Therapies (3 are significant!) that we believe deserve your full attention.
Of course Sio Gene Therapies may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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