Insider Sellers Might Regret Selling Aceragen Shares at a Lower Price Than Current Market Value

Even though Aceragen, Inc. (FRA:V9Z) has fallen by 17% over the past week , insiders who sold US$548k worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$1.23 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Aceragen

The Last 12 Months Of Insider Transactions At Aceragen

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. It's of some comfort that this sale was conducted at a price well above the current share price, which is €0.33. So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Aceragen shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Aceragen better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Aceragen Insiders Are Selling The Stock

The last three months saw significant insider selling at Aceragen. In total, insiders dumped €170k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Aceragen insiders own about €1.5m worth of shares (which is 56% of the company). 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 Do The Aceragen Insider Transactions Indicate?

Insiders haven't bought Aceragen stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To help with this, we've discovered 6 warning signs (4 are a bit concerning!) that you ought to be aware of before buying any shares in Aceragen.

Of course Aceragen 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, 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.