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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At Eiger BioPharmaceuticals
In the last twelve months, the biggest single purchase by an insider was when Director Eldon Mayer bought US$208k worth of shares at a price of US$10.07 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$9.95). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders bought 47820 shares for a total of US$498k. Eiger BioPharmaceuticals may have bought shares in the last year, but they didn’t sell any. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Eiger BioPharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Eiger BioPharmaceuticals Insiders Bought Stock Recently
Over the last quarter, Eiger BioPharmaceuticals insiders have spent a meaningful amount on shares. Overall, four insiders shelled out US$139k for shares in the company — and none sold. This makes one think the business has some good points.
Does Eiger BioPharmaceuticals Boast High 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. Our data suggests Eiger BioPharmaceuticals insiders own 1.4% of the company, worth about US$3.5m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Eiger BioPharmaceuticals Insiders?
The recent insider purchases are 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 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 Eiger BioPharmaceuticals insiders are expecting a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Eiger BioPharmaceuticals.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.