Trade Alert: The Chair of the Board of Directors Of Applied Therapeutics, Inc. (NASDAQ:APLT), Shoshana Shendelman, Has Just Spent US$145k Buying A Few More Shares

By
Simply Wall St
Published
September 17, 2021
NasdaqGM:APLT
Source: Shutterstock

Potential Applied Therapeutics, Inc. (NASDAQ:APLT) shareholders may wish to note that the Chair of the Board of Directors, Shoshana Shendelman, recently bought US$145k worth of stock, paying US$14.50 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Applied Therapeutics

The Last 12 Months Of Insider Transactions At Applied Therapeutics

The Independent Director Stacy Kanter made the biggest insider purchase in the last 12 months. That single transaction was for US$149k worth of shares at a price of US$22.86 each. That means that an insider was happy to buy shares at above the current price of US$14.36. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$294k for 16.50k shares. But they sold 7.94k shares for US$161k. Overall, Applied Therapeutics insiders were net buyers during the last year. They paid about US$17.79 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

insider-trading-volume
NasdaqGM:APLT Insider Trading Volume September 17th 2021

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Applied Therapeutics

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 14% of Applied Therapeutics shares, worth about US$53m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Applied Therapeutics Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Applied Therapeutics insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Applied Therapeutics. When we did our research, we found 4 warning signs for Applied Therapeutics (1 shouldn't be ignored!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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