Possible Signal As Assertio Holdings Insiders Sell US$1.1m In Stock

Despite a 15% gain in Assertio Holdings, Inc.'s (NASDAQ:ASRT) stock price this week, shareholders shouldn't let up. The fact that insiders chose to dispose of US$1.1m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Assertio Holdings

Assertio Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Daniel Peisert, sold US$479k worth of shares at a price of US$3.04 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.10. So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in Assertio Holdings than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Assertio Holdings Insiders Bought Stock Recently

There was some insider buying at Assertio Holdings over the last quarter. Independent Director Heather Mason bought US$24k worth of shares in that time. However, insider James Tyree netted US$11k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Insider Ownership Of Assertio Holdings

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Assertio Holdings insiders have about 1.8% of the stock, worth approximately US$1.9m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Assertio Holdings Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. Recent insider selling makes us a little nervous, in light of the broader picture of Assertio Holdings insider transactions. And usually insiders own more stock in the company, according to our data. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Assertio Holdings you should be aware of, and 1 of these can't be ignored.

Of course Assertio Holdings 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.