Trade Alert: Founder Of NewAmsterdam Pharma Johannes Jacob Kastelein Has Sold Stock

We wouldn't blame NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) shareholders if they were a little worried about the fact that Johannes Jacob Kastelein, the Founder recently netted about US$2.5m selling shares at an average price of US$24.72. That's a big disposal, and it decreased their holding size by 47%, which is notable but not too bad.

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NewAmsterdam Pharma Insider Transactions Over The Last Year

In fact, the recent sale by Johannes Jacob Kastelein was the biggest sale of NewAmsterdam Pharma shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$24.47. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, NewAmsterdam Pharma insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for NewAmsterdam Pharma

I will like NewAmsterdam Pharma 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.0% of NewAmsterdam Pharma shares, worth about US$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About NewAmsterdam Pharma Insiders?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While it's good to be aware of 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. At Simply Wall St, we found 3 warning signs for NewAmsterdam Pharma that deserve your attention before buying any shares.

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 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.