Insiders who bought 89bio, Inc. (NASDAQ:ETNB) stock in the last 12 months were richly rewarded last week. The company’s market value increased by US$92m as a result of the stock’s 19% gain over the same period. As a result, the stock they originally bought for US$53k is now worth US$94k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for 89bio
89bio Insider Transactions Over The Last Year
The CEO & Director Rohan Palekar made the biggest insider purchase in the last 12 months. That single transaction was for US$53k worth of shares at a price of US$7.50 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$12.47. 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.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
89bio is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of 89bio
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$4.3m worth of 89bio stock, about 0.7% of the company. We consider this fairly low insider ownership.
So What Do The 89bio Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded 89bio shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we’d be more comfortable if they owned more 89bio stock. 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. Case in point: We’ve spotted 4 warning signs for 89bio you should be aware of, and 3 of them shouldn’t be ignored.
Of course 89bio 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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