Septerna Insiders Enjoying US$951k Appreciation On US$934.3k Investment

Septerna, Inc. (NASDAQ:SEPN) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a US$52m rise in the company's market capitalisation, translating to a gain of 102% on their initial investment. As a result, their original purchase of US$934.3k worth of stock is now worth US$1.89m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Septerna Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Alan Ezekowitz bought US$516k worth of shares at a price of US$6.35 per share. Even though the purchase was made at a significantly lower price than the recent price (US$12.01), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Septerna insiders bought shares during the last year, they didn't sell. 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!

Check out our latest analysis for Septerna

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 Septerna

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Septerna insiders own 3.2% of the company, worth about US$17m. 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 Septerna Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Septerna shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Septerna insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Septerna has 4 warning signs (2 don't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course Septerna 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.