Potential LENZ Therapeutics, Inc. (NASDAQ:LENZ) shareholders may wish to note that the President, Evert Schimmelpennink, recently bought US$251k worth of stock, paying US$8.95 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 57%.

LENZ Therapeutics Insider Transactions Over The Last Year

In fact, the recent purchase by Evert Schimmelpennink was the biggest purchase of LENZ Therapeutics shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$9.15. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for LENZ Therapeutics share holders is that insiders were buying at near the current price.

In the last twelve months LENZ Therapeutics insiders were buying shares, but not selling. They paid about US$12.15 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

LENZ Therapeutics 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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that LENZ Therapeutics insiders own about US$7.2m worth of shares (which is 2.5% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About LENZ Therapeutics Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that LENZ Therapeutics insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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.