Some Applied Therapeutics, Inc. (NASDAQ:APLT) shareholders may be a little concerned to see that the Chair of the Board of Directors, Shoshana Shendelman, recently sold a substantial US$4.7m worth of stock at a price of US$6.06 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Applied Therapeutics
In fact, the recent sale by Shoshana Shendelman was the biggest sale of Applied Therapeutics shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$5.85. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year we saw more insider selling of Applied Therapeutics shares, than buying. 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!
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 Applied Therapeutics
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.1% of Applied Therapeutics shares, worth about US$41m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Applied Therapeutics Tell Us?
Insiders haven't bought Applied Therapeutics stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. For example, Applied Therapeutics has 4 warning signs (and 2 which are concerning) we think you should know about.
But note: Applied Therapeutics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.