Some ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) shareholders may be a little concerned to see that the Chief Business Officer & Secretary, Justin Chakma, recently sold a substantial US$1.4m worth of stock at a price of US$14.12 per share. That's a big disposal, and it decreased their holding size by 42%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At ARS Pharmaceuticals

Notably, that recent sale by Justin Chakma is the biggest insider sale of ARS Pharmaceuticals shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$14.51. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 42% of Justin Chakma's holding.

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!

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Does ARS Pharmaceuticals Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. ARS Pharmaceuticals insiders own about US$276m worth of shares (which is 20% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At ARS Pharmaceuticals Tell Us?

An insider hasn't bought ARS Pharmaceuticals stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. While conducting our analysis, we found that ARS Pharmaceuticals has 2 warning signs and it would be unwise to ignore these.

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.