Pleasing Signs As A Number Of Insiders Buy Generate Biomedicines Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Generate Biomedicines, Inc.'s (NASDAQ:GENB) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Generate Biomedicines

Over the last year, we can see that the biggest insider purchase was by CEO & Director Michael Nally for US$240k worth of shares, at about US$12.00 per share. So it's clear an insider wanted to buy, at around the current price, which is US$12.09. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Generate Biomedicines share holders is that insiders were buying at near the current price.

In the last twelve months Generate Biomedicines insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Generate Biomedicines

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Generate Biomedicines Boast High Insider Ownership?

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 Generate Biomedicines insiders own 4.1% of the company, worth about US$63m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Generate Biomedicines Tell Us?

It doesn't really mean much that no insider has traded Generate Biomedicines shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Generate Biomedicines and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Generate Biomedicines. Be aware that Generate Biomedicines is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

Of course Generate Biomedicines 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.