While Aura Biosciences, Inc. (NASDAQ:AURA) shareholders have had a good week with the stock up 14%, they shouldn't let their guards down. Even though stock prices were relatively low, insiders elected to sell US$876k worth of stock in the last year, which could indicate some expected downturn.
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
The insider, Elisabet de los Pinos, made the biggest insider sale in the last 12 months. That single transaction was for US$241k worth of shares at a price of US$5.06 each. That means that an insider was selling shares at slightly below the current price (US$7.61). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 15% of Elisabet de los Pinos's holding.
In the last year Aura Biosciences insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Aura Biosciences
I will like Aura Biosciences better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Aura Biosciences
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. Our data indicates that Aura Biosciences insiders own about US$9.5m worth of shares (which is 1.2% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Aura Biosciences Insiders?
The fact that there have been no Aura Biosciences insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Aura Biosciences insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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 3 warning signs for Aura Biosciences (2 shouldn't be ignored!) and we strongly recommend you look at these before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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