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Insider Buyers At Generation Bio Sitting On US$1.1m Profit

Insiders who bought Generation Bio Co. (NASDAQ:GBIO) in the last 12 months may probably not pay attention to the stock's recent 11% drop. Reason being, despite the recent loss, insiders original purchase value of US$778.9k is now worth US$1.87m.

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 Generation Bio

The Last 12 Months Of Insider Transactions At Generation Bio

In the last twelve months, the biggest single purchase by an insider was when Independent Director Charles Rowland bought US$478k worth of shares at a price of US$1.50 per share. We do like to see buying, but this purchase was made at well below the current price of US$3.39. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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While Generation Bio insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Generation Bio

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.7% of Generation Bio shares, worth about US$13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Generation Bio Tell Us?

It doesn't really mean much that no insider has traded Generation Bio shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Generation Bio and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Generation Bio. While conducting our analysis, we found that Generation Bio has 2 warning signs and it would be unwise to ignore them.

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.

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.