Insiders Enjoy US$227k Return After Buying LENZ Therapeutics Stock

Insiders who bought LENZ Therapeutics, Inc. (NASDAQ:LENZ) stock lover the last 12 months are probably not as affected by last week’s 11% loss. Reason being, despite the recent loss, insiders original purchase value of US$551.1k is now worth US$777.7k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for LENZ Therapeutics

LENZ Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder & Director James McCollum for US$501k worth of shares, at about US$15.99 per share. Even though the purchase was made at a significantly lower price than the recent price (US$22.53), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

LENZ Therapeutics insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Of LENZ Therapeutics

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. LENZ Therapeutics insiders own about US$18m worth of shares. That equates to 2.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The LENZ Therapeutics Insider Transactions Indicate?

It doesn't really mean much that no insider has traded LENZ Therapeutics shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in LENZ Therapeutics and we see no evidence to suggest they are worried about the future. 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 instance, we've identified 2 warning signs for LENZ Therapeutics (1 makes us a bit uncomfortable) you should be aware of.

Of course LENZ Therapeutics 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.