Yahoo Finance Favourable Signals For FibroGen: Numerous Insiders Acquired Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of FibroGen, Inc. (NASDAQ:FGEN), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for FibroGen
The Last 12 Months Of Insider Transactions At FibroGen
Over the last year, we can see that the biggest insider purchase was by CEO & Director Thane Wettig for US$95k worth of shares, at about US$1.91 per share. That means that an insider was happy to buy shares at above the current price of US$1.06. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Thane Wettig was also the biggest seller.
Happily, we note that in the last year insiders paid US$121k for 72.12k shares. On the other hand they divested 2.67k shares, for US$18k. Overall, FibroGen insiders were net buyers during the last year. Their average price was about US$1.68. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
FibroGen Insiders Bought Stock Recently
There was some insider buying at FibroGen over the last quarter. Senior VP & Chief Medical Officer Deyaa Adib bought US$26k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests FibroGen insiders own 0.9% of the company, worth about US$1.0m. We consider this fairly low insider ownership.
So What Do The FibroGen Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if FibroGen insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for FibroGen (2 don't sit too well with us!) and we strongly recommend you look at them before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
