Even if it's not a huge purchase, we think it was good to see that Bryan Giraudo, the COO & CFO of Gossamer Bio, Inc. (NASDAQ:GOSS) recently shelled out US$59k to buy stock, at US$0.59 per share. That purchase might not be huge but it did increase their holding by 21%.

Gossamer Bio Insider Transactions Over The Last Year

Notably, that recent purchase by COO & CFO Bryan Giraudo was not the only time they bought Gossamer Bio shares this year. They previously made an even bigger purchase of US$113k worth of shares at a price of US$0.56 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$0.65. 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.

In the last twelve months insiders purchased 357.00k shares for US$212k. But they sold 44.07k shares for US$52k. In the last twelve months there was more buying than selling by Gossamer Bio insiders. 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!

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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 looking at our data, insiders own US$4.3m worth of Gossamer Bio stock, about 3.0% of the company. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Gossamer Bio Insiders?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Gossamer Bio insiders bought more shares in the company. 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. Our analysis shows 4 warning signs for Gossamer Bio (2 are a bit unpleasant!) and we strongly recommend you look at these before investing.

Of course Gossamer Bio 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com