2seventy bio Insiders Made A Wise Decision By Selling US$688k Worth Of Stock

While 2seventy bio, Inc. (NASDAQ:TSVT) shareholders have had a good week with the stock up 14%, they shouldn't let their guards down. Even though stock prices were relatively low, insiders elected to sell US$688k worth of stock in the last year, which could indicate some expected downturn.

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.

Check out our latest analysis for 2seventy bio

2seventy bio Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman of the Board, Nick Leschly, for US$280k worth of shares, at about US$3.87 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$4.77. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 5.9% of Nick Leschly's holding.

2seventy bio insiders didn't buy any shares over 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!

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2seventy bio Insiders Are Selling The Stock

We have seen a bit of insider selling at 2seventy bio, over the last three months. Insiders divested only US$42k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that 2seventy bio insiders own 2.9% of the company, worth about US$6.9m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At 2seventy bio Tell Us?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. We're a little cautious about the insider selling at 2seventy bio. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 2seventy bio. For example - 2seventy bio has 1 warning sign we think you should be aware of.

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 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.