This Insider Has Just Sold Shares In Editas Medicine, Inc. (NASDAQ:EDIT)

By
Simply Wall St
Published
January 14, 2021
NasdaqGS:EDIT
Source: Shutterstock

Anyone interested in Editas Medicine, Inc. (NASDAQ:EDIT) should probably be aware that the CFO, Principal Accounting Officer, Michelle Robertson, recently divested US$123k worth of shares in the company, at an average price of US$78.27 each. On the bright side, that sale was only 7.8% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Editas Medicine

Editas Medicine Insider Transactions Over The Last Year

In fact, the recent sale by Michelle Robertson was the biggest sale of Editas Medicine shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$75.92. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Editas Medicine didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGS:EDIT Insider Trading Volume January 15th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Editas Medicine Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Editas Medicine insiders own about US$62m worth of shares. That equates to 1.3% of the company. 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 Editas Medicine Insiders?

Insiders sold Editas Medicine shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Editas Medicine. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Editas Medicine.

Of course Editas Medicine 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, but not derivative transactions.

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