In This Article:
Potential Prelude Therapeutics Incorporated (NASDAQ:PRLD) shareholders may wish to note that the Founder, Krishna Vaddi, recently bought US$467k worth of stock, paying US$0.69 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 28%.
The Last 12 Months Of Insider Transactions At Prelude Therapeutics
In fact, the recent purchase by Krishna Vaddi was the biggest purchase of Prelude Therapeutics shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$0.80. 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 Prelude Therapeutics insiders bought shares during the last year, they didn't sell. The average buy price was around US$0.77. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent 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!
Check out our latest analysis for Prelude Therapeutics
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).
Insider Ownership Of Prelude Therapeutics
For a common shareholder, it is worth checking how many shares are held by company 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. From our data, it seems that Prelude Therapeutics insiders own 6.6% of the company, worth about US$2.5m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Prelude Therapeutics Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Prelude Therapeutics stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Prelude Therapeutics and understanding them should be part of your investment process.