Yahoo Finance Insider Spends US$3.1m Buying More Shares In Kronos Bio
Those following along with Kronos Bio, Inc. (NASDAQ:KRON) will no doubt be intrigued by the recent purchase of shares by Norbert Bischofberger, President of the company, who spent a stonking US$3.1m on stock at an average price of US$1.04. Not only is that a big swing, but it increased their holding size by 36%, which is definitely great to see.
Check out our latest analysis for Kronos Bio
Kronos Bio Insider Transactions Over The Last Year
In fact, the recent purchase by Norbert Bischofberger was the biggest purchase of Kronos Bio shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$1.08. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Norbert Bischofberger was the only individual insider to buy shares in the last twelve months.
Norbert Bischofberger purchased 4.74m shares over the year. The average price per share was US$0.97. 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!
Kronos Bio is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Kronos Bio Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Kronos Bio insiders own about US$14m worth of shares. That equates to 21% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Kronos Bio Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Kronos Bio insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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 4 warning signs with Kronos Bio and understanding these should be part of your investment process.
But note: Kronos Bio 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.
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