Some Gossamer Bio, Inc. (NASDAQ:GOSS) shareholders may be a little concerned to see that the Chief Scientific Officer, Luisa Salter-Cid, recently sold a whopping US$994k worth of stock at a price of US$19.88 per share. That’s a big dump, and it decreased their holding size by 28.7%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Gossamer Bio
Notably, that recent sale by Chief Scientific Officer Luisa Salter-Cid was not the only time they sold Gossamer Bio shares this year. They previously made an even bigger sale of -US$994.0k worth of shares at a price of US$20.09 per share. That means that even when the share price was below the current price of US$21.65, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. We note that the biggest single sale was only 28.7% of Luisa Salter-Cid’s holding.
Over the last year, we can see that insiders have bought 15750 shares worth US$255k. But insiders sold 50000 shares worth US$994k. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Gossamer Bio insiders own about US$176m worth of shares (which is 12% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Gossamer Bio Tell Us?
An insider sold stock recently, but they haven’t been buying. And our longer term analysis of insider transactions didn’t bring confidence, either. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.