Insiders In Orchestra BioMed Holdings Left Out From 10% Price Rise After Disposing Stock

Despite the fact that Orchestra BioMed Holdings, Inc. (NASDAQ:OBIO) stock rose 10% last week, insiders who sold US$226k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$5.65, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Orchestra BioMed Holdings

Orchestra BioMed Holdings Insider Transactions Over The Last Year

The Founder, Darren Sherman, made the biggest insider sale in the last 12 months. That single transaction was for US$121k worth of shares at a price of US$6.10 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$4.43. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 32.50k shares for US$170k. But they sold 39.93k shares for US$226k. All up, insiders sold more shares in Orchestra BioMed Holdings than they bought, over the last year. 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!

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

I will like Orchestra BioMed Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Orchestra BioMed Holdings Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Orchestra BioMed Holdings. Founder David Hochman bought US$19k worth of shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Orchestra BioMed Holdings Boast High 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. Insiders own 3.4% of Orchestra BioMed Holdings shares, worth about US$5.2m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Orchestra BioMed Holdings Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. The insider transactions at Orchestra BioMed Holdings are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. 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. For example - Orchestra BioMed Holdings has 3 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.