Even if it's not a huge purchase, we think it was good to see that David Happel, the CEO, President & Director of Sagimet Biosciences Inc. (NASDAQ:SGMT) recently shelled out US$64k to buy stock, at US$5.27 per share. While that isn't the hugest buy, it actually boosted their shareholding by 553%, which is good to see.

View our latest analysis for Sagimet Biosciences

The Last 12 Months Of Insider Transactions At Sagimet Biosciences

Over the last year, we can see that the biggest insider purchase was by Independent Director Beth Seidenberg for US$750k worth of shares, at about US$16.00 per share. That means that an insider was happy to buy shares at above the current price of US$5.42. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Sagimet Biosciences insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$13.43. This is nice to see since it implies that insiders might see value around current prices. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Sagimet Biosciences

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. Insiders own 3.9% of Sagimet Biosciences shares, worth about US$6.8m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Sagimet Biosciences Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Sagimet Biosciences insiders are expecting a bright 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. For example, Sagimet Biosciences has 4 warning signs (and 2 which can't be ignored) we think you should know about.

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.