Don't Ignore The Fact That This Insider Just Sold Some Shares In Travere Therapeutics, Inc. (NASDAQ:TVTX)

By
Simply Wall St
Published
May 15, 2022
NasdaqGM:TVTX
Source: Shutterstock

Investors may wish to note that the Director of Travere Therapeutics, Inc., Stephen Aselage, recently netted US$56k from selling stock, receiving an average price of US$21.92. However we note that the sale only shrunk their holding by 2.1%.

Check out our latest analysis for Travere Therapeutics

Travere Therapeutics Insider Transactions Over The Last Year

In fact, the recent sale by Director Stephen Aselage was not their only sale of Travere Therapeutics shares this year. Earlier in the year, they fetched US$29.39 per share in a -US$935k sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$22.18. So it is hard to draw any strong conclusion from it.

Travere Therapeutics insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGM:TVTX Insider Trading Volume May 15th 2022

I will like Travere Therapeutics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Travere Therapeutics

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. We usually like to see fairly high levels of insider ownership. Insiders own 1.0% of Travere Therapeutics shares, worth about US$15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Travere Therapeutics Insiders?

Insiders sold Travere Therapeutics shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Travere Therapeutics.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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