Have Orchestra BioMed Holdings Insiders Been Selling Stock?

We'd be surprised if Orchestra BioMed Holdings, Inc. (NASDAQ:OBIO) shareholders haven't noticed that the Founder, Darren Sherman, recently sold US$121k worth of stock at US$5.87 per share. On the bright side, that sale was only 7.7% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Orchestra BioMed Holdings

The Last 12 Months Of Insider Transactions At Orchestra BioMed Holdings

In fact, the recent sale by Darren Sherman was the biggest sale of Orchestra BioMed Holdings shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$5.61. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid US$75k for 12.50k shares. But they sold 20.62k shares for US$121k. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$5.0m worth of Orchestra BioMed Holdings stock, about 2.3% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Orchestra BioMed Holdings Insiders?

The insider sales have outweighed the insider buying, at Orchestra BioMed Holdings, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. 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. You'd be interested to know, that we found 4 warning signs for Orchestra BioMed Holdings and we suggest you have a look.

But note: Orchestra BioMed Holdings 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.