Some Race Oncology Limited (ASX:RAC) shareholders may be a little concerned to see that insider William Garner recently sold a substantial AU$4.4m worth of stock at a price of AU$3.45 per share. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Race Oncology
Notably, that recent sale by insider William Garner was not the only time they sold Race Oncology shares this year. Earlier in the year, they fetched AU$4.00 per share in a -AU$6.6m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$3.31). So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 231.28k shares for AU$762k. On the other hand they divested 6.64m shares, for AU$24m. Over the last year we saw more insider selling of Race Oncology shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. Race Oncology insiders own about AU$165m worth of shares (which is 34% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Race Oncology Tell Us?
The stark truth for Race Oncology is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. For example, Race Oncology has 3 warning signs (and 2 which are significant) 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, but not derivative transactions.
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.
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