Insiders Could Have Profited By Holding onto Climb Bio Shares Despite 13% Drop

Despite the fact that Climb Bio, Inc.'s (NASDAQ:CLYM) value has dropped 13% in the last week insiders who sold US$3.4m worth of stock in the past 12 months have had less success. The average selling price of US$7.16 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Climb Bio

The Last 12 Months Of Insider Transactions At Climb Bio

In the last twelve months, the biggest single sale by an insider was when the insider, Valerie Morisset, sold US$988k worth of shares at a price of US$8.07 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. The silver lining is that this sell-down took place above the latest price (US$2.00). So it may not shed much light on insider confidence at current levels. Valerie Morisset was the only individual insider to sell shares in the last twelve months.

Valerie Morisset ditched 473.99k shares over the year. The average price per share was US$7.16. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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 suggests Climb Bio insiders own 0.8% of the company, worth about US$1.1m. 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.

So What Do The Climb Bio Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Climb Bio insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. Every company has risks, and we've spotted 5 warning signs for Climb Bio (of which 3 don't sit too well with us!) you should know about.

But note: Climb Bio may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.