Have Protara Therapeutics, Inc. (NASDAQ:TARA) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
July 31, 2020
NasdaqGM:TARA

Some Protara Therapeutics, Inc. (NASDAQ:TARA) shareholders may be a little concerned to see that insider Randall Marshall recently sold a substantial US$791k worth of stock at a price of US$30.48 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.0%.

Check out our latest analysis for Protara Therapeutics

Protara Therapeutics Insider Transactions Over The Last Year

In fact, the recent sale by Randall Marshall was the biggest sale of Protara Therapeutics shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$25.78. So it is hard to draw any strong conclusion from it.

Randall Marshall sold a total of 39.01k shares over the year at an average price of US$29.29. 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!

insider-trading-volume
NasdaqCM:TARA Insider Trading Volume July 31st 2020

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

Insider Ownership of Protara Therapeutics

Many investors like to check how much of a company is owned by 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. It appears that Protara Therapeutics insiders own 26% of the company, worth about US$40m. 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 Does This Data Suggest About Protara Therapeutics Insiders?

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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Protara Therapeutics. Every company has risks, and we've spotted 3 warning signs for Protara Therapeutics you should know about.

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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This article by Simply Wall St is general in nature. 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.
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