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

Applied Therapeutics, Inc.'s (NASDAQ:APLT) stock price has dropped 15% in the previous week, but insiders who sold US$8.1m in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$5.69 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Applied Therapeutics

Applied Therapeutics Insider Transactions Over The Last Year

The insider, Shoshana Shendelman, made the biggest insider sale in the last 12 months. That single transaction was for US$4.7m worth of shares at a price of US$6.18 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$0.73. So it may not shed much light on insider confidence at current levels.

Insiders in Applied Therapeutics didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Applied Therapeutics Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Applied Therapeutics insiders own about US$5.2m worth of shares (which is 5.5% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Applied Therapeutics Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Applied Therapeutics insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Applied Therapeutics. To help with this, we've discovered 6 warning signs (4 can't be ignored!) that you ought to be aware of before buying any shares in Applied Therapeutics.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.