This Insider Has Just Sold Shares In Knight Therapeutics

Anyone interested in Knight Therapeutics Inc. (TSE:GUD) should probably be aware that the Independent Director, Robert Lande, recently divested CA$148k worth of shares in the company, at an average price of CA$5.92 each. On the bright side, that sale was only 9.3% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Knight Therapeutics

Knight Therapeutics Insider Transactions Over The Last Year

In fact, the recent sale by Robert Lande was the biggest sale of Knight Therapeutics shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of CA$5.79. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. Knight Therapeutics insiders own about CA$136m worth of shares. That equates to 23% 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 Knight Therapeutics Tell Us?

An insider sold Knight Therapeutics shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Knight Therapeutics has 1 warning sign and it would be unwise to ignore it.

But note: Knight 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.

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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.