Insider Spends US$101k Buying More Shares In Biomea Fusion

Potential Biomea Fusion, Inc. (NASDAQ:BMEA) shareholders may wish to note that the Independent Director, Michael J. Hitchcock, recently bought US$101k worth of stock, paying US$10.06 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 200%, potentially signalling some real optimism.

View our latest analysis for Biomea Fusion

The Last 12 Months Of Insider Transactions At Biomea Fusion

In fact, the recent purchase by Michael J. Hitchcock was the biggest purchase of Biomea Fusion shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$10.13. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Biomea Fusion insiders decided to buy shares at close to current prices.

In the last twelve months Biomea Fusion insiders were buying shares, but not selling. The average buy price was around US$6.93. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

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

Insider Ownership

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. Biomea Fusion insiders own about US$44m worth of shares. That equates to 13% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Biomea Fusion Insiders?

The recent insider purchase is heartening. 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. Insiders likely see value in Biomea Fusion shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Biomea Fusion you should be aware of, and 2 of these are significant.

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 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.