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Potential Terns Pharmaceuticals, Inc. (NASDAQ:TERN) shareholders may wish to note that the CEO & Director, Amy Burroughs, recently bought US$110k worth of stock, paying US$7.15 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 423%.
See our latest analysis for Terns Pharmaceuticals
Terns Pharmaceuticals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Hongbo Lu for US$5.0m worth of shares, at about US$10.50 per share. That means that even when the share price was higher than US$6.92 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. 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 insiders purchased 501.22k shares for US$5.2m. But they sold 6.14k shares for US$47k. Overall, Terns Pharmaceuticals insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Terns Pharmaceuticals 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
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Terns Pharmaceuticals insiders own 0.6% of the company, worth about US$3.6m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Terns Pharmaceuticals Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Terns Pharmaceuticals insiders are expecting a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 4 warning signs for Terns Pharmaceuticals (of which 2 can't be ignored!) you should know about.