Insiders Who Purchased US$655.0k Of iBio Stock May Not Have Expected 23% Tumble

Insiders who bought US$655.0k worth of iBio, Inc.'s (NASDAQ:IBIO) stock at an average buy price of US$2.72 over the last year may be disappointed by the recent 23% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$186.2k, which is not great.

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.

We've discovered 7 warning signs about iBio. View them for free.

iBio Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Antonio Parada for US$500k worth of shares, at about US$2.72 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.77). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

iBio insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for iBio

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests iBio insiders own 2.6% of the company, worth about US$332k. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About iBio Insiders?

It doesn't really mean much that no insider has traded iBio shares in the last quarter. 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 iBio insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, iBio has 7 warning signs (and 5 which are a bit concerning) we think you should know about.

But note: iBio 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.