Investors who take an interest in Pandion Therapeutics, Inc. (NASDAQ:PAND) should definitely note that the Independent Director, Daniel Becker, recently paid US$15.29 per share to buy US$449k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.1%.
See our latest analysis for Pandion Therapeutics
The Last 12 Months Of Insider Transactions At Pandion Therapeutics
In fact, the recent purchase by Independent Director Daniel Becker was not their only acquisition of Pandion Therapeutics shares this year. Earlier in the year, they paid US$18.00 per share in a US$13m purchase. That means that an insider was happy to buy shares at above the current price of US$17.11. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Pandion Therapeutics insiders were buying shares, but not selling. 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!
Pandion Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Pandion Therapeutics Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Pandion Therapeutics insiders own about US$83m worth of shares. That equates to 17% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Pandion Therapeutics Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Pandion Therapeutics shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Pandion Therapeutics (of which 1 is concerning!) you should know about.