Investors who take an interest in Generation Bio Co. (NASDAQ:GBIO) should definitely note that the Independent Director, Charles Rowland, recently paid US$24.50 per share to buy US$500k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 25%.
The Last 12 Months Of Insider Transactions At Generation Bio
In fact, the recent purchase by Independent Director Charles Rowland was not their only acquisition of Generation Bio shares this year. They previously made an even bigger purchase of US$570k worth of shares at a price of US$19.00 per share. We do like to see buying, but this purchase was made at well below the current price of US$28.90. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Generation Bio insiders bought shares during the last year, they didn't sell. They paid about US$21.47 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Generation Bio insiders own about US$92m worth of shares. That equates to 5.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Generation Bio Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Generation Bio shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Generation Bio. To that end, you should learn about the 3 warning signs we've spotted with Generation Bio (including 1 which is significant).
Of course Generation Bio 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. 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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