Independent Director Aaron Davis Just Sold A Bunch Of Shares In Odonate Therapeutics, Inc. (NASDAQ:ODT)

By
Simply Wall St
Published
November 24, 2021
OTCPK:ODTC
Source: Shutterstock

We'd be surprised if Odonate Therapeutics, Inc. (NASDAQ:ODT) shareholders haven't noticed that the Independent Director, Aaron Davis, recently sold US$437k worth of stock at US$2.19 per share. The eyebrow raising move amounted to a reduction of 31% in their holding.

See our latest analysis for Odonate Therapeutics

The Last 12 Months Of Insider Transactions At Odonate Therapeutics

In fact, the recent sale by Aaron Davis was the biggest sale of Odonate Therapeutics shares made by an insider individual in the last twelve months, according to our records. 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$1.60. So it is hard to draw any strong conclusion from it.

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!

insider-trading-volume
NasdaqGS:ODT Insider Trading Volume November 25th 2021

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).

Insider Ownership of Odonate Therapeutics

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$1.1m worth of Odonate Therapeutics stock, about 1.7% of the company. We consider this fairly low insider ownership.

So What Do The Odonate Therapeutics Insider Transactions Indicate?

An insider sold Odonate Therapeutics shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Odonate Therapeutics. Every company has risks, and we've spotted 6 warning signs for Odonate Therapeutics (of which 3 don't sit too well with us!) 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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