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.
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!
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.
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.
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