Insider Returns Down To US$25k As Protara Therapeutics' Stock Dips 15%

Protara Therapeutics, Inc. (NASDAQ:TARA) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 15% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of US$63.8k is now worth US$88.8k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Protara Therapeutics Insider Transactions Over The Last Year

The Independent Director Richard Levy made the biggest insider purchase in the last 12 months. That single transaction was for US$64k worth of shares at a price of US$3.19 each. Even though the purchase was made at a significantly lower price than the recent price (US$4.44), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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!

See our latest analysis for Protara Therapeutics

Protara Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Protara Therapeutics

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Based on our data, Protara Therapeutics insiders have about 2.5% of the stock, worth approximately US$4.5m. We consider this fairly low insider ownership.

So What Do The Protara Therapeutics Insider Transactions Indicate?

The fact that there have been no Protara Therapeutics insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Protara Therapeutics insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Protara Therapeutics. At Simply Wall St, we've found that Protara Therapeutics has 3 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.

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 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.