Insiders who bought US$50.0k worth of Gossamer Bio, Inc. (NASDAQ:GOSS) stock in the last year have seen some of their losses recouped as the stock gained 15% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$45k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Gossamer Bio Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Sandra Milligan for US$50k worth of shares, at about US$1.92 per share. That means that an insider was happy to buy shares at above the current price of US$0.18. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Sandra Milligan was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 Of Gossamer Bio

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Gossamer Bio insiders have about 3.2% of the stock, worth approximately US$1.3m. I generally like to see higher levels of ownership.

So What Do The Gossamer Bio Insider Transactions Indicate?

The fact that there have been no Gossamer Bio insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Gossamer Bio insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gossamer 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.