From what we can see, insiders were net buyers in Aura Biosciences, Inc.'s (NASDAQ:AURA ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Aura Biosciences

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board David Johnson for US$1.4m worth of shares, at about US$7.30 per share. That implies that an insider found the current price of US$7.98 per share to be enticing. 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 Aura Biosciences share holders is that an insider was buying at near the current price. David Johnson was the only individual insider to buy shares in the last twelve months.

David Johnson bought a total of 219.67k shares over the year at an average price of US$7.30. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Aura Biosciences is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Aura Biosciences Have Sold Stock Recently

The last quarter saw substantial insider selling of Aura Biosciences shares. In total, insiders dumped US$172k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Aura Biosciences Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$4.0m worth of Aura Biosciences stock, about 1.0% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Aura Biosciences Insiders?

Insiders sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. Still, insiders don't own a great deal of the stock. So the company doesn't look great on this analysis. While we like knowing 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. Case in point: We've spotted 5 warning signs for Aura Biosciences you should be aware of, and 2 of these don't sit too well with us.

But note: Aura Biosciences may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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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.