More money in the bank for insiders who divested US$2.9m worth of Soleno Therapeutics, Inc. (NASDAQ:SLNO) shares last year

By
Simply Wall St
Published
March 19, 2022
NasdaqCM:SLNO
Source: Shutterstock

Soleno Therapeutics, Inc.'s (NASDAQ:SLNO) stock rose 11% last week, but insiders who sold US$2.9m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$1.68, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

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.

See our latest analysis for Soleno Therapeutics

Soleno Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Jack Schuler, for US$2.8m worth of shares, at about US$2.95 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 good news is that this large sale was at well above current price of US$0.31. So it may not tell us anything about how insiders feel about the current share price.

All up, insiders sold more shares in Soleno Therapeutics than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqCM:SLNO Insider Trading Volume March 19th 2022

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).

Insiders at Soleno Therapeutics Have Sold Stock Recently

We have seen a bit of insider selling at Soleno Therapeutics, over the last three months. President Anish Bhatnagar sold just US$15k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.

Insider Ownership of Soleno Therapeutics

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Soleno Therapeutics insiders own 15% of the company, worth about US$3.7m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Soleno Therapeutics Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. However, the sales are not big enough to concern us at all. Recent insider selling makes us a little nervous, in light of the broader picture of Soleno Therapeutics insider transactions. And usually insiders own more stock in the company, according to our data. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 5 warning signs for Soleno Therapeutics (2 make us uncomfortable!) that we believe deserve your full attention.

But note: Soleno 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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