Insider Traders Lose US$62k As Forte Biosciences Drops

Insiders who bought US$104.7k worth of Forte Biosciences, Inc.'s (NASDAQ:FBRX) stock at an average buy price of US$1.05 over the last year may be disappointed by the recent 10% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$43.1k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Forte Biosciences

The Last 12 Months Of Insider Transactions At Forte Biosciences

In the last twelve months, the biggest single purchase by an insider was when CEO & Chairman Paul A. Wagner bought US$105k worth of shares at a price of US$1.07 per share. That means that an insider was happy to buy shares at above the current price of US$0.43. 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. In our view, the price an insider pays for shares is very important. 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 Paul A. Wagner.

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!

Forte 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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Forte Biosciences insiders own about US$984k worth of shares (which is 6.3% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Forte Biosciences Tell Us?

The fact that there have been no Forte Biosciences insider transactions recently certainly doesn't bother us. 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 Forte Biosciences stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Forte Biosciences. At Simply Wall St, we've found that Forte Biosciences has 4 warning signs (3 are potentially serious!) that deserve your attention before going any further with your analysis.

But note: Forte Biosciences 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.