Orchestra BioMed Holdings Insiders May Regret Not Buying More, Market Cap Hits US$232m

Last week, Orchestra BioMed Holdings, Inc. (NASDAQ:OBIO) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 13% last week, resulting in a US$28m increase in the company's market worth, implying a 42% gain on their initial purchase. As a result, their original purchase of US$148.4k worth of stock is now worth US$211.1k.

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.

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Orchestra BioMed Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Founder David Hochman for US$55k worth of shares, at about US$2.75 per share. Even though the purchase was made at a significantly lower price than the recent price (US$4.42), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$148k for 47.76k shares. But they sold 2.68k shares for US$8.2k. In the last twelve months there was more buying than selling by Orchestra BioMed Holdings insiders. The average buy price was around US$3.11. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Orchestra BioMed Holdings

Orchestra BioMed Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Orchestra BioMed Holdings Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Orchestra BioMed Holdings. Insiders purchased US$45k worth of shares in that period. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Orchestra BioMed Holdings insiders own about US$6.0m worth of shares (which is 2.6% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

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

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Orchestra BioMed Holdings insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Orchestra BioMed Holdings you should be aware of, and 1 of these is potentially serious.

Of course Orchestra BioMed Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.