It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Aeglea BioTherapeutics, Inc. (NASDAQ:AGLE).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Aeglea BioTherapeutics
Chief Business Officer Aaron Schuchart made the biggest insider sale in the last 12 months. That single transaction was for US$57k worth of shares at a price of US$9.55 each. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$7.07. So it is hard to draw any strong conclusion from it. Aaron Schuchart was the only individual insider to sell shares in the last twelve months.
You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Aeglea BioTherapeutics Insiders Are Selling The Stock
Over the last three months, we’ve seen a bit of insider selling at Aeglea BioTherapeutics. US$57k worth of shares were sold by Aaron Schuchart. But the good news is that there was purchasing too (as previously mentioned), worth US$21k. While it’s not great to see insider selling, the net amount sold isn’t enough for us to want to read anything into it.
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. We usually like to see fairly high levels of insider ownership. It’s great to see that Aeglea BioTherapeutics insiders own 4.6% of the company, worth about US$7.7m. 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 Aeglea BioTherapeutics Insiders?
We note a that there’s been a little more insider selling than buying, recently. But the difference is small, and thus, not concerning. We’re a little cautious about the insider selling at Aeglea BioTherapeutics. And we’re not picking up on high enough insider ownership to give us any comfort. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.