Trade Alert: The Independent Director Of Generation Bio Co. (NASDAQ:GBIO), Charles Rowland, Has Just Spent US$500k Buying 25% More Shares

Potential Generation Bio Co. (NASDAQ:GBIO) shareholders may wish to note that the Independent Director, Charles Rowland, recently bought US$500k worth of stock, paying US$24.50 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 25%.

View our latest analysis for Generation Bio

Generation Bio Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Director Charles Rowland was not the only time they bought Generation Bio shares this year. They previously made an even bigger purchase of US$570k worth of shares at a price of US$19.00 per share. Even though the purchase was made at a significantly lower price than the recent price (US$28.90), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Generation Bio insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$21.47. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

Generation Bio is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Generation Bio

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. It appears that Generation Bio insiders own 5.8% of the company, worth about US$92m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Generation Bio Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Generation Bio insiders are well aligned, and that they may think the share price is too low. 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. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Generation Bio.

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, but not derivative transactions.

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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.
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