It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Gossamer Bio, Inc.'s (NASDAQ:GOSS) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Gossamer Bio

The Last 12 Months Of Insider Transactions At Gossamer Bio

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Faheem Hasnain bought US$250k worth of shares at a price of US$0.67 per share. We do like to see buying, but this purchase was made at well below the current price of US$1.05. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 729.00k shares for US$463k. But insiders sold 45.98k shares worth US$54k. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Gossamer Bio insiders own 3.2% of the company, worth about US$7.5m. Whilst better than nothing, we're not overly impressed by these holdings.

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. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Gossamer Bio insiders bought more shares in 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. Every company has risks, and we've spotted 2 warning signs for Gossamer Bio you should know about.

Of course Gossamer 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.