Gossamer Bio's Market Cap Up US$29m Following Year Of Insider Stock Buying

Last week, Gossamer Bio, Inc. (NASDAQ:GOSS) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 14% last week, resulting in a US$29m increase in the company's market worth, implying a 65% gain on their initial purchase. As a result, the stock they originally bought for US$462.5k is now worth US$765.5k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Gossamer Bio

The Last 12 Months Of Insider Transactions At Gossamer Bio

Over the last year, we can see that the biggest insider purchase was by Co-Founder Faheem Hasnain for US$250k worth of shares, at about US$0.67 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.05. 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.

Happily, we note that in the last year insiders paid US$463k for 729.00k shares. On the other hand they divested 45.98k shares, for US$54k. In total, Gossamer Bio insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Are Gossamer Bio Insiders Buying Or Selling?

In the last quarter Chief Medical Officer Richard Aranda sold US$1.3k worth of equity. That's not a lot. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

Does Gossamer Bio Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.2% of Gossamer Bio shares, worth about US$7.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Gossamer Bio Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Gossamer Bio insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Gossamer Bio you should be aware of.

Of course Gossamer Bio 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 of direct interests only, but not derivative transactions or indirect interests.

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

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.