Insiders who purchased Biomea Fusion, Inc. (NASDAQ:BMEA) shares in the past 12 months are unlikely to be deeply impacted by the stock's 15% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of US$87k is now worth US$113k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Biomea Fusion
The Last 12 Months Of Insider Transactions At Biomea Fusion
The CFO & Principal Accounting Officer Franco Valle made the biggest insider purchase in the last 12 months. That single transaction was for US$87k worth of shares at a price of US$8.68 each. We do like to see buying, but this purchase was made at well below the current price of US$11.32. 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.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!NasdaqGS:BMEA Insider Trading Volume September 21st 2022
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Biomea Fusion
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. From our data, it seems that Biomea Fusion insiders own 1.9% of the company, worth about US$6.3m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Biomea Fusion Tell Us?
The fact that there have been no Biomea Fusion insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Biomea Fusion stock. While we like knowing 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. Our analysis shows 4 warning signs for Biomea Fusion (2 can't be ignored!) and we strongly recommend you look at them before investing .
Of course Biomea Fusion 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.