Anyone interested in Protara Therapeutics, Inc. (NASDAQ:TARA) should probably be aware that a company insider, Randall Marshall, recently divested US$131k worth of shares in the company, at an average price of US$27.28 each. On the bright side, that sale was only 0.7% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At Protara Therapeutics
Notably, that recent sale by Randall Marshall is the biggest insider sale of Protara Therapeutics shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$25.90. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Protara Therapeutics insiders own about US$40m worth of shares. That equates to 27% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Protara 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. 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Protara Therapeutics.
But note: Protara 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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