Beam Therapeutics' Market Cap Dips US$121m, Insiders Who Sold Offset Some Losses

Insiders at Beam Therapeutics Inc. (NASDAQ:BEAM) sold US$586k worth of stock at an average price of US$59.11 a share over the past year, making the most of their investment. The company’s market cap plunged by US$121m after price dropped by 4.0% last week but insiders were able to limit their loss to an extent.

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.

View our latest analysis for Beam Therapeutics

The Last 12 Months Of Insider Transactions At Beam Therapeutics

Over the last year, we can see that the biggest insider sale was by the CEO & Director, John Evans, for US$370k worth of shares, at about US$59.11 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place 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$42.54. So it may not shed much light on insider confidence at current levels.

In the last year Beam Therapeutics insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Beam Therapeutics

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Beam Therapeutics insiders own about US$52m worth of shares. That equates to 1.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Beam Therapeutics Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Beam Therapeutics insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. While we like knowing 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. To that end, you should learn about the 4 warning signs we've spotted with Beam Therapeutics (including 1 which shouldn't be ignored).

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, but not derivative transactions.

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.