Karyopharm Therapeutics Falls To US$0.88, But Insiders Sold At Lower Price

Karyopharm Therapeutics Inc.'s (NASDAQ:KPTI) stock price has dropped 11% in the previous week, but insiders who sold US$351k in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$1.14 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Karyopharm Therapeutics

Karyopharm Therapeutics Insider Transactions Over The Last Year

They previously made a sale of -US$117k worth of shares at a price of US$1.20 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$0.88. So it may not shed much light on insider confidence at current levels.

Karyopharm Therapeutics insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) 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!

I will like Karyopharm Therapeutics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Karyopharm Therapeutics Insiders Are Selling The Stock

We have seen a bit of insider selling at Karyopharm Therapeutics, over the last three months. Insiders sold just US$21k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.

Does Karyopharm 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. We usually like to see fairly high levels of insider ownership. Our data suggests Karyopharm Therapeutics insiders own 1.3% of the company, worth about US$1.5m. We consider this fairly low insider ownership.

So What Do The Karyopharm Therapeutics Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. Recent insider selling makes us a little nervous, in light of the broader picture of Karyopharm Therapeutics insider transactions. 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 Karyopharm Therapeutics. For instance, we've identified 4 warning signs for Karyopharm Therapeutics (1 is a bit unpleasant) you should be aware of.

But note: Karyopharm 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 of direct interests only, but not derivative transactions or indirect interests.

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