Several Insiders Invested In Abeona Therapeutics Flagging Positive News
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Abeona Therapeutics Inc. (NASDAQ:ABEO), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Abeona Therapeutics
Abeona Therapeutics Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Vishwas Seshadri for US$88k worth of shares, at about US$4.39 per share. Even though the purchase was made at a significantly lower price than the recent price (US$7.97), 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.
Over the last year, we can see that insiders have bought 46.00k shares worth US$192k. But they sold 42.63k shares for US$183k. In the last twelve months there was more buying than selling by Abeona Therapeutics insiders. You can see a visual depiction of insider transactions (by companies and 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Abeona Therapeutics Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Abeona Therapeutics. We can see that President Vishwas Seshadri paid US$88k for shares in the company. But Independent Director Mark Alvino sold shares worth US$36k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Abeona Therapeutics insiders own 5.8% of the company, worth about US$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Abeona Therapeutics Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. 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 Abeona Therapeutics we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 3 warning signs with Abeona Therapeutics and understanding these should be part of your investment process.
But note: Abeona 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
