Even though Valion Bio, Inc. (NASDAQ:VBIO) stock gained 19% last week, insiders who sold US$368k worth of stock over the past year are probably better off. Selling at an average price of US$0.71, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Valion Bio Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Maier Tarlow, sold US$368k worth of shares at a price of US$0.82 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$0.33. So it may not tell us anything about how insiders feel about the current share price. Maier Tarlow was the only individual insider to sell shares in the last twelve months. Notably Maier Tarlow was also the biggest buyer, having purchased US$104k worth of shares.

Over the last year, we can see that insiders have bought 168.00k shares worth US$104k. But they sold 519.74k shares for US$368k. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At Valion Bio Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at Valion Bio. In total, insider Maier Tarlow sold US$368k worth of shares in that time. On the other hand we note insider Maier Tarlow bought US$75k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.

Insider Ownership Of Valion 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. Insiders own 5.9% of Valion Bio shares, worth about US$63k, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Valion Bio Insiders?

The insider sales have outweighed the insider buying, at Valion Bio, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 6 warning signs (5 don't sit too well with us!) that you ought to be aware of before buying any shares in Valion Bio.

Of course Valion 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.

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.