Have Insiders Sold PTC Therapeutics Shares Recently?

Anyone interested in PTC Therapeutics, Inc. (NASDAQ:PTCT) should probably be aware that the CEO & Director, Matthew Klein, recently divested US$374k worth of shares in the company, at an average price of US$45.16 each. That sale was 12% of their holding, so it does make us raise an eyebrow.

View our latest analysis for PTC Therapeutics

PTC Therapeutics Insider Transactions Over The Last Year

Notably, that recent sale by Matthew Klein is the biggest insider sale of PTC Therapeutics shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$45.78. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 12% of Matthew Klein's holding.

PTC Therapeutics insiders didn't buy any shares over 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!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. PTC Therapeutics insiders own about US$83m worth of shares. That equates to 2.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At PTC Therapeutics Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PTC Therapeutics. When we did our research, we found 4 warning signs for PTC Therapeutics (1 is potentially serious!) that we believe deserve your full attention.

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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.