Don't Ignore The Insider Selling In 2seventy bio

Anyone interested in 2seventy bio, Inc. (NASDAQ:TSVT) should probably be aware that the Chairman of the Board, Nick Leschly, recently divested US$255k worth of shares in the company, at an average price of US$2.93 each. On the bright side, that sale was only 6.3% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for 2seventy bio

2seventy bio Insider Transactions Over The Last Year

Notably, that recent sale by Nick Leschly is the biggest insider sale of 2seventy bio shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$2.69. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

2seventy bio insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. Our data suggests 2seventy bio insiders own 2.9% of the company, worth about US$4.2m. We consider this fairly low insider ownership.

So What Do The 2seventy bio Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of 2seventy bio.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.