Yahoo Finance One Biomea Fusion, Inc. (NASDAQ:BMEA) insider upped their stake in the previous year
Insiders were net buyers of Biomea Fusion, Inc.'s (NASDAQ:BMEA ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Biomea Fusion
Biomea Fusion Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CFO & Principal Accounting Officer Franco Valle bought US$87k worth of shares at a price of US$8.68 per share. That means that even when the share price was higher than US$4.56 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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. Franco Valle was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Biomea Fusion is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Biomea Fusion Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Our data suggests Biomea Fusion insiders own 1.9% of the company, worth about US$2.5m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Biomea Fusion Tell Us?
It is good to see the recent insider purchase. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Biomea Fusion insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Biomea Fusion. When we did our research, we found 4 warning signs for Biomea Fusion (2 are concerning!) that we believe deserve your full attention.
But note: Biomea Fusion 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, but not derivative transactions.
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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.
