Anyone interested in Mirati Therapeutics, Inc. (NASDAQ:MRTX) should probably be aware that a company insider, Julie Cherrington, recently divested US$402k worth of shares in the company, at an average price of US$201 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.
Mirati Therapeutics Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President, Charles Baum, for US$949k worth of shares, at about US$216 per share. So what is clear is that an insider saw fit to sell at around the current price of US$195. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year Mirati Therapeutics insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. Insiders own 0.9% of Mirati Therapeutics shares, worth about US$90m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Mirati Therapeutics Tell Us?
Insiders haven't bought Mirati Therapeutics stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mirati Therapeutics. Every company has risks, and we've spotted 3 warning signs for Mirati Therapeutics you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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