President Of Soleno Therapeutics Sold 84% Of Their Shares

Some Soleno Therapeutics, Inc. (NASDAQ:SLNO) shareholders may be a little concerned to see that the President, Anish Bhatnagar, recently sold a substantial US$3.3m worth of stock at a price of US$35.67 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 84% of their entire holding.

View our latest analysis for Soleno Therapeutics

The Last 12 Months Of Insider Transactions At Soleno Therapeutics

In fact, the recent sale by Anish Bhatnagar was the biggest sale of Soleno Therapeutics shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$37.89, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 84% of Anish Bhatnagar's holding.

In the last year Soleno Therapeutics insiders didn't buy any company stock. 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!

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.1% of Soleno Therapeutics shares, 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 Do The Soleno Therapeutics Insider Transactions Indicate?

Insiders 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. While we like knowing 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. Our analysis shows 4 warning signs for Soleno Therapeutics (3 are potentially serious!) and we strongly recommend you look at these before investing.

Of course Soleno Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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.