Potential Prelude Therapeutics Incorporated (NASDAQ:PRLD) shareholders may wish to note that the Founder, Krishna Vaddi, recently bought US$467k worth of stock, paying US$0.69 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 28%.

The Last 12 Months Of Insider Transactions At Prelude Therapeutics

In fact, the recent purchase by Krishna Vaddi was the biggest purchase of Prelude Therapeutics shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$0.80. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Prelude Therapeutics insiders bought shares during the last year, they didn't sell. The average buy price was around US$0.77. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent 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!

Check out our latest analysis for Prelude Therapeutics

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 Of Prelude Therapeutics

For a common shareholder, it is worth checking how many shares are held by company 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. From our data, it seems that Prelude Therapeutics insiders own 6.6% of the company, worth about US$2.5m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Prelude Therapeutics Insiders?

It's certainly positive to see the recent insider purchases. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Prelude Therapeutics stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Prelude Therapeutics and understanding them should be part of your investment process.

Of course Prelude Therapeutics 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.

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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.