INmune Bio, Inc. (NASDAQ:INMB) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 35%, resulting in a US$61m rise in the company's market capitalisation, translating to a gain of 38% on their initial investment. In other words, the original US$714.9k purchase is now worth US$983.2k.
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.
INmune Bio Insider Transactions Over The Last Year
Notably, that recent purchase by Scott Juda is the biggest insider purchase of INmune Bio shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.29. 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.
While INmune Bio insiders bought shares during the last year, they didn't sell. 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!
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.
INmune Bio Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at INmune Bio. Overall, four insiders shelled out US$666k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of INmune Bio
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that INmune Bio insiders own 24% of the company, worth about US$51m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At INmune Bio Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in INmune Bio shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for INmune Bio (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.
Of course INmune Bio 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 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.