Repare Therapeutics Inc.'s (NASDAQ:RPTX)) market cap declines to US$367m but insiders who sold US$3.3m stock were able to hedge their losses

By
Simply Wall St
Published
May 15, 2022
NasdaqGS:RPTX
Source: Shutterstock

Over the past year, insiders sold US$3.3m worth of Repare Therapeutics Inc. (NASDAQ:RPTX) stock at an average price of US$31.80 per share allowing them to get the most out of their money. The company's market worth decreased by US$75m over the past week after the stock price dropped 17%, although insiders were able to minimize their losses

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Repare Therapeutics

Repare Therapeutics Insider Transactions Over The Last Year

The President, Lloyd Segal, made the biggest insider sale in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$31.74 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$8.76. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 16.54k shares worth US$475k. But they sold 103.58k shares for US$3.3m. In total, Repare Therapeutics insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:RPTX Insider Trading Volume May 15th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Repare Therapeutics Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data suggests Repare Therapeutics insiders own 0.8% of the company, worth about US$2.9m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Repare Therapeutics Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Repare Therapeutics insiders. And we're not picking up on high enough insider ownership to give us any comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Repare Therapeutics has 4 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

But note: Repare Therapeutics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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