Insider Spends US$110k Buying More Shares In Terns Pharmaceuticals

Potential Terns Pharmaceuticals, Inc. (NASDAQ:TERN) shareholders may wish to note that the CEO & Director, Amy Burroughs, recently bought US$110k worth of stock, paying US$7.15 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 423%, potentially signalling some real optimism.

See our latest analysis for Terns Pharmaceuticals

Terns Pharmaceuticals Insider Transactions Over The Last Year

The Independent Director Hongbo Lu made the biggest insider purchase in the last 12 months. That single transaction was for US$5.0m worth of shares at a price of US$10.50 each. That means that an insider was happy to buy shares at above the current price of US$6.92. 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 insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 501.22k shares worth US$5.2m. But insiders sold 6.14k shares worth US$47k. Overall, Terns Pharmaceuticals insiders were net buyers during the last year. 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!

Terns Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Terns Pharmaceuticals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Terns Pharmaceuticals insiders have about 0.6% of the stock, worth approximately US$3.6m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Terns Pharmaceuticals Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Terns Pharmaceuticals stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Terns Pharmaceuticals.

Of course Terns Pharmaceuticals 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.