Insider Buyers At Generation Bio Sitting On US$512k Profit

Insiders who purchased Generation Bio Co. (NASDAQ:GBIO) shares in the past 12 months are unlikely to be deeply impacted by the stock's 17% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of US$778.9k is now worth US$1.29m.

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.

Check out our latest analysis for Generation Bio

The Last 12 Months Of Insider Transactions At Generation Bio

The Independent Director Charles Rowland made the biggest insider purchase in the last 12 months. That single transaction was for US$478k worth of shares at a price of US$1.50 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.34. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Generation Bio insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership Of Generation Bio

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. From our data, it seems that Generation Bio insiders own 5.7% of the company, worth about US$9.8m. We do generally prefer see higher levels of insider ownership.

So What Do The Generation Bio Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Generation Bio insiders are doubting 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. Our analysis shows 2 warning signs for Generation Bio (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

But note: Generation 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.

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