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Potential Biomea Fusion, Inc. (NASDAQ:BMEA) shareholders may wish to note that the Independent Director, Michael J. Hitchcock, recently bought US$101k worth of stock, paying US$10.06 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 200%, potentially signalling some real optimism.
View our latest analysis for Biomea Fusion
The Last 12 Months Of Insider Transactions At Biomea Fusion
Notably, that recent purchase by Michael J. Hitchcock is the biggest insider purchase of Biomea Fusion shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$10.13. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Biomea Fusion share holders is that insiders were buying at near the current price.
Biomea Fusion insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$6.93. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
Biomea Fusion is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 13% of Biomea Fusion shares, worth about US$44m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Biomea Fusion Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Biomea Fusion insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Biomea Fusion. Our analysis shows 4 warning signs for Biomea Fusion (2 are a bit unpleasant!) and we strongly recommend you look at them before investing.