Selling Aceragen Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Aceragen, Inc.'s (BST:V9Z) value has fallen 14% in the last week, but insiders who sold US$548k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$1.23 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Aceragen

Aceragen Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Member of Scientific Advisor Board, Atul Chopra, for €378k worth of shares, at about €1.86 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of €0.35. So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in Aceragen than they bought, over the last year. 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!

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Aceragen Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Aceragen shares. In total, insiders sold €170k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Aceragen

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Aceragen insiders own 56% of the company, currently worth about €1.6m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Aceragen Insiders?

Insiders haven't bought Aceragen stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aceragen. When we did our research, we found 4 warning signs for Aceragen (3 are a bit concerning!) that we believe deserve your full attention.

But note: Aceragen 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, but not derivative transactions.

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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.