Insider Buyers At Zura Bio Likely Disappointed With 11% Slide

The recent price decline of 11% in Zura Bio Limited's (NASDAQ:ZURA) stock may have disappointed insiders who bought US$1.01m worth of shares at an average price of US$4.14 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$857.6k, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Zura Bio

The Last 12 Months Of Insider Transactions At Zura Bio

Over the last year, we can see that the biggest insider purchase was by Independent Chairman Amit Munshi for US$500k worth of shares, at about US$3.13 per share. We do like to see buying, but this purchase was made at well below the current price of US$3.53. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Zura Bio insiders were buying shares, but not selling. Their average price was about US$4.14. These transactions suggest that insiders have considered the current price attractive. 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!

Zura Bio is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Zura Bio Insiders Bought Stock Recently

Over the last quarter, Zura Bio insiders have spent a meaningful amount on shares. Non-Executive Independent Director Arnout van Amstel spent US$496k on stock, and there wasn't any selling. This makes one think the business has some good points.

Insider Ownership Of Zura Bio

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. It appears that Zura Bio insiders own 10% of the company, worth about US$25m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Zura Bio Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Zura Bio shares, given these transactions (along with notable insider ownership of the company). 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. Be aware that Zura Bio is showing 5 warning signs in our investment analysis, and 2 of those are a bit concerning...

But note: Zura Bio may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.