Shareholders Can't Ignore US$651k Of Sales By G1 Therapeutics Insiders

Despite the fact that G1 Therapeutics, Inc. (NASDAQ:GTHX) stock rose 26% last week, insiders who sold US$651k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$3.90, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for G1 Therapeutics

The Last 12 Months Of Insider Transactions At G1 Therapeutics

The CEO, President & Director, John Bailey, made the biggest insider sale in the last 12 months. That single transaction was for US$178k worth of shares at a price of US$4.79 each. 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$3.24). So it may not tell us anything about how insiders feel about the current share price.

G1 Therapeutics insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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G1 Therapeutics Insiders Are Selling The Stock

The last quarter saw substantial insider selling of G1 Therapeutics shares. In total, insiders sold US$441k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does G1 Therapeutics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests G1 Therapeutics insiders own 2.5% of the company, worth about US$4.1m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At G1 Therapeutics Tell Us?

Insiders sold G1 Therapeutics shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing G1 Therapeutics. You'd be interested to know, that we found 2 warning signs for G1 Therapeutics and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com