Insiders Could Have Profited By Holding onto Olema Pharmaceuticals Shares Despite 13% Drop

Olema Pharmaceuticals, Inc.'s (NASDAQ:OLMA) stock price has dropped 13% in the previous week, but insiders who sold US$1.9m in stock over the past year have had less luck. The average selling price of US$9.01 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

The Last 12 Months Of Insider Transactions At Olema Pharmaceuticals

Over the last year, we can see that the biggest insider sale was by the President, Sean Bohen, for US$986k worth of shares, at about US$9.39 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$3.76). So it may not tell us anything about how insiders feel about the current share price.

Insiders in Olema Pharmaceuticals didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Olema Pharmaceuticals

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Olema Pharmaceuticals insiders own 4.6% of the company, worth about US$13m. 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 Olema Pharmaceuticals Insiders?

The fact that there have been no Olema Pharmaceuticals insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Olema Pharmaceuticals insiders. The modest level of insider ownership is, at least, some comfort. 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. Every company has risks, and we've spotted 3 warning signs for Olema Pharmaceuticals (of which 1 is a bit unpleasant!) 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 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.