Trade Alert: Chief Business Officer & Secretary Of ARS Pharmaceuticals Justin Chakma Has Sold Stock

We wouldn't blame ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) shareholders if they were a little worried about the fact that Justin Chakma, the Chief Business Officer & Secretary recently netted about US$1.4m selling shares at an average price of US$14.12. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for ARS Pharmaceuticals

The Last 12 Months Of Insider Transactions At ARS Pharmaceuticals

In fact, the recent sale by Justin Chakma was the biggest sale of ARS Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$14.51). 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 only 42% of Justin Chakma's holding.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of ARS Pharmaceuticals

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ARS Pharmaceuticals insiders own 20% of the company, currently worth about US$276m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The ARS Pharmaceuticals Insider Transactions Indicate?

An insider hasn't bought ARS Pharmaceuticals stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ARS Pharmaceuticals. In terms of investment risks, we've identified 2 warning signs with ARS Pharmaceuticals and understanding these should be part of your investment process.

Of course ARS Pharmaceuticals 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.