Investors who take an interest in Synthetic Biologics, Inc. (NYSEMKT:SYN) should definitely note that insider David Lazar recently paid US$0.67 per share to buy US$174k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 13%.
The Last 12 Months Of Insider Transactions At Synthetic Biologics
In fact, the recent purchase by insider David Lazar was not their only acquisition of Synthetic Biologics shares this year. Earlier in the year, they paid US$0.38 per share in a US$723k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$0.55. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
David Lazar bought a total of 2.22m shares over the year at an average price of US$0.40. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Synthetic Biologics Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$1.3m worth of Synthetic Biologics stock, about 2.2% of the company. We prefer to see high levels of insider ownership.
So What Do The Synthetic Biologics Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. 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 Synthetic Biologics stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Synthetic Biologics. To that end, you should learn about the 6 warning signs we've spotted with Synthetic Biologics (including 3 which don't sit too well with us).
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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, but not derivative transactions.
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