We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Audentes Therapeutics, Inc. (NASDAQ:BOLD), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Audentes Therapeutics Insider Transactions Over The Last Year
Lead Independent Director Louis Lange made the biggest insider sale in the last 12 months. That single transaction was for US$540k worth of shares at a price of US$22.49 each. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$23.48. While their view may have changed since they sold, this isn’t a particularly bullish sign. When an insider sells below the current price, it does tend to make us wonder about the current valuation. Please note, however, that this single sale was just 6.1% of Louis Lange’s stake. Louis Lange was the only individual insider to sell shares in the last twelve months.
You can see the insider transactions over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Audentes 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. It’s good to see that Audentes Therapeutics insiders own 1.6% of the company, worth about US$16m. 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 Audentes Therapeutics Insiders?
An insider sold Audentes Therapeutics shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We’d certainly think twice before buying! Of course, the future is what matters most. So if you are interested in Audentes Therapeutics, you should check out this free report on analyst forecasts for the company.
Of course Audentes Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.