Independent Director Stacy Kanter Just Bought 100% More Shares In Applied Therapeutics, Inc. (NASDAQ:APLT)

Investors who take an interest in Applied Therapeutics, Inc. (NASDAQ:APLT) should definitely note that the Independent Director, Stacy Kanter, recently paid US$22.86 per share to buy US$149k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 100%, potentially signalling some real optimism.

Check out our latest analysis for Applied Therapeutics

The Last 12 Months Of Insider Transactions At Applied Therapeutics

The Independent Director, Joel Marcus, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$49.66 each. 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 US$22.93. So it may not tell us anything about how insiders feel about the current share price.

Over the last year we saw more insider selling of Applied Therapeutics shares, than buying. 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!

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Insider Ownership of Applied Therapeutics

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Applied Therapeutics insiders own 20% of the company, worth about US$114m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Applied Therapeutics Insiders?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Applied Therapeutics. While conducting our analysis, we found that Applied Therapeutics has 3 warning signs and it would be unwise to ignore these.

But note: Applied Therapeutics 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. 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.
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