Cabaletta Bio Slides As Insider Purchases Lose Another US$60k
The recent price decline of 14% in Cabaletta Bio, Inc.'s (NASDAQ:CABA) stock may have disappointed insiders who bought US$296.2k worth of shares at an average price of US$2.24 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$236.4k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Cabaletta Bio
Over the last year, we can see that the biggest insider purchase was by Co-Founder Steven Nichtberger for US$101k worth of shares, at about US$2.24 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.79). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Cabaletta Bio insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Cabaletta Bio
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Cabaletta Bio
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Cabaletta Bio insiders have about 1.0% of the stock, worth approximately US$2.9m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Cabaletta Bio Insiders?
It doesn't really mean much that no insider has traded Cabaletta Bio shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Cabaletta Bio stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cabaletta Bio. When we did our research, we found 3 warning signs for Cabaletta Bio (2 don't sit too well with us!) that we believe deserve your full attention.
Of course Cabaletta 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.
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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.