48% Of This X4 Pharmaceuticals Insider's Holdings Were Sold

Insiders were net sellers of X4 Pharmaceuticals, Inc.'s (NASDAQ:XFOR ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for X4 Pharmaceuticals

The Last 12 Months Of Insider Transactions At X4 Pharmaceuticals

Over the last year, we can see that the biggest insider sale was by the Director, Murray Stewart, for US$138k worth of shares, at about US$1.06 per share. That means that even when the share price was below the current price of US$1.09, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. This single sale was just 48% of Murray Stewart's stake. The only individual insider seller over the last year was Murray Stewart.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does X4 Pharmaceuticals Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that X4 Pharmaceuticals insiders own about US$9.2m worth of shares (which is 4.7% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The X4 Pharmaceuticals Insider Transactions Indicate?

It doesn't really mean much that no insider has traded X4 Pharmaceuticals shares in the last quarter. The insider transactions at X4 Pharmaceuticals are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for X4 Pharmaceuticals you should be aware of, and 1 of these can't be ignored.

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.