Selling Arcturus Therapeutics Holdings Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Arcturus Therapeutics Holdings Inc.'s (NASDAQ:ARCT) stock price has dropped 12% in the previous week, but insiders who sold US$1.6m 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$32.03 is still lower than the current share price.

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 Arcturus Therapeutics Holdings

The Last 12 Months Of Insider Transactions At Arcturus Therapeutics Holdings

Over the last year, we can see that the biggest insider sale was by the CFO & Director, Andrew Sassine, for US$1.6m worth of shares, at about US$32.03 per share. While insider selling is a negative, to us, it is more negative if the shares are sold 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$15.86. So it is hard to draw any strong conclusion from it. Andrew Sassine was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Arcturus Therapeutics Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Arcturus Therapeutics Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Arcturus Therapeutics Holdings insiders own 8.4% of the company, worth about US$37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Arcturus Therapeutics Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Arcturus Therapeutics Holdings insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Arcturus Therapeutics Holdings.

But note: Arcturus Therapeutics Holdings 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 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.