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

Aceragen, Inc.'s (NASDAQ:ACGN) stock price has dropped 13% in the previous week, but insiders who sold US$597k in 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$1.34 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Aceragen

The Last 12 Months Of Insider Transactions At Aceragen

The Member of Scientific Advisor Board, Atul Chopra, made the biggest insider sale in the last 12 months. That single transaction was for US$409k worth of shares at a price of US$2.01 each. 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 (US$0.42). So it may not tell us anything about how insiders feel about the current share price.

In total, Aceragen insiders sold more than they bought over the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Aceragen Have Sold Stock Recently

We've seen more insider selling than insider buying at Aceragen recently. In that time, insiders dumped US$597k worth of shares. On the other hand we note insider Abude Umari bought US$216k worth of shares , as previously mentioned . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.

Insider Ownership Of Aceragen

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Aceragen insiders own about US$2.0m worth of shares (which is 56% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Aceragen Insiders?

The stark truth for Aceragen is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. To that end, you should learn about the 6 warning signs we've spotted with Aceragen (including 4 which shouldn't be ignored).

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.