While it's been a great week for bluebird bio, Inc. (NASDAQ:BLUE) shareholders after stock gained 33%, company insiders might have missed out on those gains after selling stock earlier this year. The value of their investment would have been higher had they waited to sell their stock.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At bluebird bio
The President, Andrew Obenshain, made the biggest insider sale in the last 12 months. That single transaction was for US$60k worth of shares at a price of US$3.54 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$1.46. So it may not shed much light on insider confidence at current levels.
Insiders in bluebird bio didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like bluebird 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.
bluebird bio Insiders Are Selling The Stock
Over the last three months, we've seen a bit of insider selling at bluebird bio. Insiders sold just US$35k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.
Insider Ownership Of bluebird 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$1.3m worth of bluebird bio stock, about 0.5% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About bluebird bio Insiders?
Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. Recent sales exacerbate our caution arising from analysis of bluebird bio insider transactions. And usually insiders own more stock in the company, according to our data. 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. For instance, we've identified 3 warning signs for bluebird bio (2 make us uncomfortable) you should be aware of.
But note: bluebird 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.