Trade Alert: The Independent Chairman Of Evelo Biosciences, Inc. (NASDAQ:EVLO), David Epstein, Has Just Spent US$51k Buying 77% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Evelo Biosciences, Inc. (NASDAQ:EVLO) Independent Chairman, David Epstein, recently bought US$51k worth of stock, for US$6.66 per share. Even though that isn't a massive buy, it did increase their holding by 77%, which is arguably a good sign.

Check out our latest analysis for Evelo Biosciences

The Last 12 Months Of Insider Transactions At Evelo Biosciences

In fact, the recent purchase by David Epstein was the biggest purchase of Evelo Biosciences shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$9.41. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

David Epstein bought a total of 17.70k shares over the year at an average price of US$5.41. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Evelo Biosciences 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 Evelo Biosciences

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. From looking at our data, insiders own US$2.2m worth of Evelo Biosciences stock, about 0.5% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Evelo Biosciences Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Evelo Biosciences stock. 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. When we did our research, we found 5 warning signs for Evelo Biosciences (2 are a bit concerning!) that we believe deserve your full attention.

Of course Evelo Biosciences 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.

If you decide to trade Evelo Biosciences, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.