The recent price decline of 33% in Inozyme Pharma, Inc.'s (NASDAQ:INZY) stock may have disappointed insiders who bought US$450k worth of shares at an average price of US$3.69 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$320k, which is not great.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Inozyme Pharma

Inozyme Pharma Insider Transactions Over The Last Year

The Co-Founder Axel Bolte made the biggest insider purchase in the last 12 months. That single transaction was for US$250k worth of shares at a price of US$3.69 each. That means that an insider was happy to buy shares at above the current price of US$2.62. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Inozyme Pharma insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Insider Ownership Of Inozyme Pharma

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Inozyme Pharma insiders have about 1.6% of the stock, worth approximately US$1.7m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Inozyme Pharma Insiders?

The fact that there have been no Inozyme Pharma insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Inozyme Pharma insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Inozyme Pharma has 5 warning signs (3 can't be ignored!) that deserve your attention before going any further with your analysis.

Of course Inozyme Pharma may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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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.