Insiders seem to have made the most of their holdings by selling US$103k worth of Sagimet Biosciences Inc. (NASDAQ:SGMT) stock at an average sell price of US$3.10 during the past year. The company's market valuation decreased by US$51m after the stock price dropped 27% over the past week, but insiders were spared from painful losses.

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.

Sagimet Biosciences Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO, President & Director David Happel for US$64k worth of shares, at about US$5.27 per share. That means that an insider was happy to buy shares at above the current price of US$4.41. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was David Happel.

Over the last year we saw more insider selling of Sagimet Biosciences shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. 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 small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Sagimet Biosciences

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 10% of Sagimet Biosciences shares, worth about US$14m. 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 Sagimet Biosciences Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Sagimet Biosciences insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. While it's good to be aware of 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. Our analysis shows 5 warning signs for Sagimet Biosciences (3 shouldn't be ignored!) and we strongly recommend you look at them before investing.

Of course Sagimet Biosciences 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.