Insiders are probably glad they sold their shares in G1 Therapeutics, Inc. (NASDAQ:GTHX) after 26% drop

Insiders at G1 Therapeutics, Inc. (NASDAQ:GTHX) sold US$439k worth of stock at an average price of US$10.29 a share over the past year, making the most of their investment. The company’s market cap plunged by US$122m after price dropped by 26% last week but insiders were able to limit their loss to an extent.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out the opportunities and risks within the US Biotechs industry.

G1 Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO, President & Director, John Bailey, for US$355k worth of shares, at about US$10.41 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$8.21). So it is hard to draw any strong conclusion from it.

In the last year G1 Therapeutics insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does G1 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. From looking at our data, insiders own US$3.4m worth of G1 Therapeutics stock, about 1.0% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At G1 Therapeutics Tell Us?

It doesn't really mean much that no insider has traded G1 Therapeutics shares in the last quarter. We don't take much encouragement from the transactions by G1 Therapeutics insiders. And we're not picking up on high enough insider ownership to give us any comfort. While we like knowing 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. While conducting our analysis, we found that G1 Therapeutics has 3 warning signs and it would be unwise to ignore them.

But note: G1 Therapeutics 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, but not derivative transactions.

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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.