Korro Bio, Inc. (NASDAQ:KRRO) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 28% resulting in a US$42m addition to the company’s market value. Put another way, the original US$2.30m acquisition is now worth US$2.74m.

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.

Korro Bio Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Mohamad Makhzoumi for US$2.3m worth of shares, at about US$11.11 per share. Even though the purchase was made at a significantly lower price than the recent price (US$13.25), we still think insider buying is a positive. 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.

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!

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.

Korro Bio Insiders Are Selling The Stock

The last three months saw significant insider selling at Korro Bio. In total, insiders dumped US$439k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Korro Bio

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 Korro Bio insiders own 4.7% of the company, worth about US$9.1m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Korro Bio Insider Transactions Indicate?

Insiders haven't bought Korro Bio stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. But we'd like it if insiders owned more stock, overall. So the company doesn't look great on this analysis. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Korro Bio.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.