Market cap

As Kronos Bio, Inc. (NASDAQ:KRON) Market Cap Falls to $203 Million, Insiders May Question Their Decision to Buy Earlier This Year

Insiders who bought $2.4 million worth of Kronos Bio, Inc. (NASDAQ:KRON) at an average buy price of $3.98 over the past year may be disappointed with the stock’s recent 22% decline. Insiders invest in the hope that their money will increase in value over time. However, following recent losses, their initial investment is now only worth US$2.2 million, which is not what they expected.

While we don’t believe shareholders should simply follow insider trades, logic dictates that you pay attention to whether insiders are buying or selling shares.

Check out our latest analysis for Kronos Bio

Kronos Bio insider trades over the past year

In the past twelve months, the largest individual insider purchase was when Chairman Norbert Bischofberger bought $2.3 million worth of stock at $3.83 per share. This means that even when the stock price was above US$3.58 (the recent price), an insider wanted to buy stock. Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. In our view, the price an insider pays for a stock is very important. Generally, we are more positive about a stock if insiders bought the stock above current prices, as this suggests they viewed the stock as good value, even at a higher price.

Fortunately, we note that last year insiders paid $2.4 million for 612,640 shares. But insiders sold 27.79k shares worth US$344k. In total, Kronos Bio insiders have bought more than they have sold over the past year. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you click on the chart, you can see all individual trades including stock price, individual and date!

NasdaqGS: KRON Insider Trading Volume September 24, 2022

There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.

Insider Ownership of Kronos Bio

I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. High insider participation often makes company management more concerned with the interests of shareholders. Kronos Bio insiders own approximately $35 million in stock. This equals 17% of the business. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.

So what does this data suggest about Kronos Bio insiders?

It doesn’t mean much that no insider has traded Kronos Bio shares in the last quarter. On a more positive note, last year’s transactions are encouraging. Insiders have a stake in Kronos Bio and their transactions are of no concern to us. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Be aware that Kronos Bio displays 4 warning signs in our investment analysisand 2 of them are a little concerning…

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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