Bullish Inhibrx Biosciences Insiders Rewarded As Their Investment Rises To US$9.02m

Inhibrx Biosciences, Inc. (NASDAQ:INBX) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a US$42m rise in the company's market capitalisation, translating to a gain of 66% on their initial investment. As a result, the stock they originally bought for US$5.42m is now worth US$9.02m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Inhibrx Biosciences Insider Transactions Over The Last Year

The Independent Director John Kayyem made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$14.23 each. We do like to see buying, but this purchase was made at well below the current price of US$23.94. 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 Inhibrx Biosciences insiders were buying shares, but not selling. 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!

Check out our latest analysis for Inhibrx Biosciences

Inhibrx Biosciences is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 19% of Inhibrx Biosciences shares, worth about US$66m. 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 Inhibrx Biosciences Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Inhibrx Biosciences shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Inhibrx Biosciences and their transactions don't cause us concern. 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. For instance, we've identified 2 warning signs for Inhibrx Biosciences (1 shouldn't be ignored) you should be aware of.

Of course Inhibrx Biosciences 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.

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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.