For 2seventy bio Insiders, Selling US$769k Of Shares Was A Smart Move

Last week, 2seventy bio, Inc.'s (NASDAQ:TSVT) stock jumped 15%, but insiders who sold US$769k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$4.32, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

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.

See our latest analysis for 2seventy bio

The Last 12 Months Of Insider Transactions At 2seventy bio

The Chairman of the Board, Nick Leschly, made the biggest insider sale in the last 12 months. That single transaction was for US$280k worth of shares at a price of US$3.87 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$4.93. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. 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 a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like 2seventy bio better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of 2seventy bio

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests 2seventy bio insiders own 2.0% of the company, worth about US$4.8m. We consider this fairly low insider ownership.

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

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by 2seventy bio insiders. And usually insiders own more stock in the company, according to our data. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that 2seventy bio has 3 warning signs and it would be unwise to ignore these.

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.