Quite a few Akebia Therapeutics, Inc. (NASDAQ:AKBA) insiders sold their shares over the past year, which may be a cause for concern. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Akebia Therapeutics
Over the last year, we can see that the biggest insider sale was by the CEO, President & Director, John Butler, for US$170k worth of shares, at about US$3.40 per share. 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$1.98). So it is hard to draw any strong conclusion from it.
Akebia Therapeutics insiders didn't buy any shares over the last year. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Akebia Therapeutics Have Sold Stock Recently
We have seen a bit of insider selling at Akebia Therapeutics, over the last three months. Senior VP Violetta Cotreau sold just US$13k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.
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. Based on our data, Akebia Therapeutics insiders have about 1.0% of the stock, worth approximately US$3.4m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Akebia Therapeutics Insiders?
We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. Recent sales exacerbate our caution arising from analysis of Akebia Therapeutics insider transactions. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Akebia Therapeutics and understanding them should be part of your investment process.
Of course Akebia Therapeutics 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.
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.