FibroGen's US$6.2m Market Cap Fall Books Insider Losses

The recent price decline of 16% in FibroGen, Inc.'s (NASDAQ:FGEN) stock may have disappointed insiders who bought US$121.4k worth of shares at an average price of US$1.68 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$24.3k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for FibroGen

FibroGen Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Director Thane Wettig for US$95k worth of shares, at about US$1.91 per share. That means that an insider was happy to buy shares at above the current price of US$0.34. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months FibroGen insiders were buying shares, but not selling. They paid about US$1.68 on average. This is nice to see since it implies that insiders might see value around current prices. 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!

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

Does FibroGen Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. From what we can see in our data, insiders own only about US$308k worth of FibroGen shares. We might be missing something but that seems like very low insider ownership.

What Might The Insider Transactions At FibroGen Tell Us?

It doesn't really mean much that no insider has traded FibroGen shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if FibroGen insiders bought more shares in the company. 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. To that end, you should learn about the 6 warning signs we've spotted with FibroGen (including 3 which are a bit unpleasant).

But note: FibroGen 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.