Trade Alert: Christopher Simms At IVERIC bio, Inc. (NASDAQ:ISEE), Has Just Spent US$50k Buying 77% More Shares

By
Simply Wall St
Published
November 24, 2021
NasdaqGS:ISEE
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that Christopher Simms, who is a company insider, recently bought US$50k worth of stock, for US$16.30 per share. Even though that isn't a massive buy, it did increase their holding by 77%, which is arguably a good sign.

View our latest analysis for IVERIC bio

IVERIC bio Insider Transactions Over The Last Year

In fact, the recent purchase by Christopher Simms was the biggest purchase of IVERIC bio shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$15.85. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Christopher Simms was the only individual insider to buy during the last year.

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!

insider-trading-volume
NasdaqGS:ISEE Insider Trading Volume November 24th 2021

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

Insider Ownership of IVERIC bio

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. IVERIC bio insiders own about US$12m worth of shares. That equates to 0.7% of the company. 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 Does This Data Suggest About IVERIC bio Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of IVERIC bio we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IVERIC bio. Case in point: We've spotted 4 warning signs for IVERIC bio you should be aware of, and 1 of these shouldn't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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.

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