Insider Buyers Lose US$92k As Aprea Therapeutics Sheds US$3.2m

The recent price decline of 15% in Aprea Therapeutics, Inc.'s (NASDAQ:APRE) stock may have disappointed insiders who bought US$287.9k worth of shares at an average price of US$4.85 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$196.3k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Aprea Therapeutics

The Last 12 Months Of Insider Transactions At Aprea Therapeutics

In the last twelve months, the biggest single purchase by an insider was when Independent Director Marc Duey bought US$132k worth of shares at a price of US$4.39 per share. That means that an insider was happy to buy shares at above the current price of US$3.31. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Marc Duey was also the biggest seller.

Happily, we note that in the last year insiders paid US$288k for 59.32k shares. But they sold 6.46k shares for US$30k. In the last twelve months there was more buying than selling by Aprea Therapeutics insiders. Their average price was about US$4.85. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Aprea 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Aprea Therapeutics insiders own about US$2.3m worth of shares (which is 12% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Aprea Therapeutics Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Aprea Therapeutics insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aprea Therapeutics. Case in point: We've spotted 5 warning signs for Aprea Therapeutics you should be aware of, and 1 of them is a bit concerning.

Of course Aprea 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 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.