Pleasing Signs As A Number Of Insiders Buy AN2 Therapeutics Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in AN2 Therapeutics, Inc.'s (NASDAQ:ANTX) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for AN2 Therapeutics

AN2 Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Robin Readnour for US$213k worth of shares, at about US$1.16 per share. That means that an insider was happy to buy shares at above the current price of US$1.09. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$291k for 277.00k shares. But insiders sold 17.61k shares worth US$24k. In the last twelve months there was more buying than selling by AN2 Therapeutics insiders. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

AN2 Therapeutics Insiders Bought Stock Recently

At AN2 Therapeutics,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, three insiders bought US$291k worth of shares. But we did see insider selling worth US$24k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

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. We usually like to see fairly high levels of insider ownership. Insiders own 6.5% of AN2 Therapeutics shares, worth about US$2.2m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At AN2 Therapeutics Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that AN2 Therapeutics insiders are expecting a bright future. 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. When we did our research, we found 4 warning signs for AN2 Therapeutics (1 doesn't sit too well with us!) that we believe deserve your full attention.

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.

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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.