Potential Lexeo Therapeutics, Inc. (NASDAQ:LXEO) shareholders may wish to note that the Independent Director, Paula H. Cholmondeley, recently bought US$105k worth of stock, paying US$6.99 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 96%.

Lexeo Therapeutics Insider Transactions Over The Last Year

Notably, that recent purchase by Paula H. Cholmondeley is the biggest insider purchase of Lexeo Therapeutics shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of US$7.83. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Lexeo Therapeutics insiders own about US$11m worth of shares. That equates to 4.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Lexeo Therapeutics Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Lexeo Therapeutics insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lexeo Therapeutics. Be aware that Lexeo Therapeutics is showing 5 warning signs in our investment analysis, and 2 of those can't be ignored...

But note: Lexeo Therapeutics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.