Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Xeris Biopharma Holdings, Inc. (NASDAQ:XERS), that sends out a positive message to the company’s shareholders.
Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Xeris Biopharma Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO Paul Edick bought US$416k worth of shares at a price of US$2.08 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$1.51). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Xeris Biopharma Holdings insiders may have bought shares in the last year, but they didn’t sell any. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Xeris Biopharma Holdings Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Xeris Biopharma Holdings. We can see that Chairman & CEO Paul Edick paid US$140k for shares in the company. No-one sold. This makes one think the business has some good points.
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. We usually like to see fairly high levels of insider ownership. Based on our data, Xeris Biopharma Holdings insiders have about 2.1% of the stock, worth approximately US$4.4m. I generally like to see higher levels of ownership.
So What Do The Xeris Biopharma Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Xeris Biopharma Holdings insiders are expecting a bright future. 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. In terms of investment risks, we’ve identified 2 warning signs with Xeris Biopharma Holdings and understanding them should be part of your investment process.
Of course Xeris Biopharma Holdings 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, but not derivative transactions.
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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.
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