Gossamer Bio Insider Confidence Rewarded, Stock Hits US$203m Market Cap

Gossamer Bio, Inc. (NASDAQ:GOSS) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 16% resulting in a US$31m addition to the company’s market value. As a result, the stock they originally bought for US$324.4k is now worth US$486.7k.

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.

Gossamer Bio Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder Faheem Hasnain for US$250k worth of shares, at about US$0.67 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$0.98. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$324k for 497.00k shares. But insiders sold 1.91k shares worth US$1.3k. In the last twelve months there was more buying than selling by Gossamer Bio insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Gossamer Bio

Gossamer Bio 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From our data, it seems that Gossamer Bio insiders own 3.1% of the company, worth about US$6.4m. We do generally prefer see higher levels of insider ownership.

So What Do The Gossamer Bio Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Gossamer Bio insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Gossamer Bio has 2 warning signs we think you should be aware of.

But note: Gossamer Bio 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.