Despite recent gains, Biomea Fusion, Inc. (NASDAQ:BMEA) insiders are still down US$47k after purchasing last year

By
Simply Wall St
Published
May 08, 2022
NasdaqGS:BMEA
Source: Shutterstock

Some of the losses seen by insiders who purchased US$87k worth of Biomea Fusion, Inc. (NASDAQ:BMEA) shares over the past year were recovered after the stock increased by 34% over the past week. However, total losses seen by insiders are still US$47k but in since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Biomea Fusion

The Last 12 Months Of Insider Transactions At Biomea Fusion

In the last twelve months, the biggest single purchase by an insider was when CFO & Principal Accounting Officer Franco Valle bought US$87k worth of shares at a price of US$8.68 per share. That means that even when the share price was higher than US$4.01 (the recent price), an insider wanted to purchase shares. 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 when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Franco Valle.

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!

insider-trading-volume
NasdaqGS:BMEA Insider Trading Volume May 8th 2022

Biomea Fusion is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Biomea Fusion

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$2.2m worth of Biomea Fusion stock, about 1.9% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Biomea Fusion Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Biomea Fusion insiders bought more 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. Case in point: We've spotted 5 warning signs for Biomea Fusion you should be aware of, and 2 of them make us uncomfortable.

Of course Biomea Fusion 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, but not derivative transactions.

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