Market cap

As the market cap of Landos Biopharma, Inc. (NASDAQ:LABP) fell $7.2 million, insiders who sold $3.1 million worth of stock were able to recoup their losses.

By selling $3.1 million worth of Landos Biopharma, Inc. (NASDAQ:LABP) at an average sale price of US$5.89 over the past year, insiders appeared to have made the most of their holdings. The company’s market value fell by US$7.2 million over the past week after the stock price fell 23%, although insiders were able to play down their losses.

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.

Discover our latest analysis for Landos Biopharma

Landos Biopharma Insider Transactions Over the Last Year

The , Josep Bassaganya-Riera, had the biggest insider sell in the last 12 months. This single transaction involved US$668,000 of shares at a price of US$6.65 each. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. It is reassuring that this sale was made at a price well above the current share price of US$0.61. So this may not shed much light on insider confidence at current levels. The only individual insider seller in the past year was Josep Bassaganya-Riera.

Josep Bassaganya-Riera has sold 521,720 shares over the past 12 months at an average price of $5.89. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!

NasdaqGM: LABP Insider Trading Volume June 27, 2022

If you’re like me, then you not want to miss this free list of growing companies insiders are buying.

Does Landos Biopharma boast of high insider ownership?

Many investors like to check how much a company is owned by insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the company for the long term. Insiders own 17% of Landos Biopharma shares, worth approximately $4.1 million. 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 Landos Biopharma insiders?

It doesn’t mean much that no insider traded Landos Biopharma shares in the last quarter. We are not very encouraged by the transactions of Landos Biopharma insiders. The modest level of insider ownership is, at least, some comfort. In addition to knowing the insider trading taking place, it is beneficial to identify the risks that Landos Biopharma faces. To do this, you need to find out about the 4 warning signs we spotted with Landos Biopharma (including 1 which is a little worrying).

But note: Landos Biopharma may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.

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.