Don't Ignore The Insider Selling In TG Therapeutics

Anyone interested in TG Therapeutics, Inc. (NASDAQ:TGTX) should probably be aware that the Independent Director, Yann Echelard, recently divested US$490k worth of shares in the company, at an average price of US$24.48 each. However, the silver lining is that the sale only reduced their total holding by 8.2%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for TG Therapeutics

The Last 12 Months Of Insider Transactions At TG Therapeutics

In the last twelve months, the biggest single sale by an insider was when the CFO, Corporate Secretary & Treasurer, Sean Power, sold US$809k worth of shares at a price of US$16.91 per share. That means that an insider was selling shares at slightly below the current price (US$28.81). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 6.6% of Sean Power's holding.

TG Therapeutics insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. TG Therapeutics insiders own about US$278m worth of shares (which is 7.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About TG Therapeutics Insiders?

An insider sold TG Therapeutics shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - TG Therapeutics has 1 warning sign we think you should be aware of.

Of course TG 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.