Insiders At KalVista Pharmaceuticals Sold US$2.5m Of Stock Potentially Indicating Weakness

Last week, KalVista Pharmaceuticals, Inc.'s (NASDAQ:KALV) stock jumped 10%, but insiders who sold US$2.5m worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$15.01, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for KalVista Pharmaceuticals

The Last 12 Months Of Insider Transactions At KalVista Pharmaceuticals

In the last twelve months, the biggest single sale by an insider was when the insider, Thomas Crockett, sold US$876k worth of shares at a price of US$15.01 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$9.98). So it may not tell us anything about how insiders feel about the current share price.

Insiders in KalVista Pharmaceuticals didn't buy any shares in 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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Insider Ownership Of KalVista Pharmaceuticals

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that KalVista Pharmaceuticals insiders own 1.5% of the company, worth about US$7.4m. We do generally prefer see higher levels of insider ownership.

So What Do The KalVista Pharmaceuticals Insider Transactions Indicate?

The fact that there have been no KalVista Pharmaceuticals insider transactions recently certainly doesn't bother us. The insider transactions at KalVista Pharmaceuticals are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing KalVista Pharmaceuticals. At Simply Wall St, we've found that KalVista Pharmaceuticals has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

Of course KalVista Pharmaceuticals 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.