Shareholders May Not Overlook AnaptysBio Insiders Selling US$3.6m In Stock

Despite the fact that AnaptysBio, Inc. (NASDAQ:ANAB) stock rose 12% last week, insiders who sold US$3.6m worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$23.23, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for AnaptysBio

The Last 12 Months Of Insider Transactions At AnaptysBio

Over the last year, we can see that the biggest insider sale was by the President, Daniel Faga, for US$3.4m worth of shares, at about US$22.78 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$15.85). So it is hard to draw any strong conclusion from it.

Insiders in AnaptysBio didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like AnaptysBio 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.

Insider Ownership

Many investors like to check how much of a company is owned by 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. Our data indicates that AnaptysBio insiders own about US$9.7m worth of shares (which is 2.1% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At AnaptysBio Tell Us?

It doesn't really mean much that no insider has traded AnaptysBio shares in the last quarter. The insider transactions at AnaptysBio are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AnaptysBio. Case in point: We've spotted 3 warning signs for AnaptysBio you should be aware of, and 1 of these is potentially serious.

Of course AnaptysBio 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.

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.