Travere Therapeutics Falls To US$7.85, But Insiders Sold At Lower Price

Travere Therapeutics, Inc.'s (NASDAQ:TVTX) value has fallen 43% in the last week, but insiders who sold US$325k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$21.93 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Travere Therapeutics

Travere Therapeutics Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Commercial Officer, Peter Heerma, sold US$78k worth of shares at a price of US$25.68 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$7.85. So it may not shed much light on insider confidence at current levels.

Insiders in Travere Therapeutics didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.

Have Travere Therapeutics Insiders Traded Recently?

Over the last three months, we've seen a bit of insider selling at Travere Therapeutics. Chief Financial Officer Christopher Cline sold just US$6.7k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

Does Travere Therapeutics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Based on our data, Travere Therapeutics insiders have about 0.8% of the stock, worth approximately US$4.8m. We prefer to see high levels of insider ownership.

So What Do The Travere Therapeutics Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. Recent sales exacerbate our caution arising from analysis of Travere Therapeutics insider transactions. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. Every company has risks, and we've spotted 3 warning signs for Travere Therapeutics you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.