We wouldn't blame Soleno Therapeutics, Inc. (NASDAQ:SLNO) shareholders if they were a little worried about the fact that Anish Bhatnagar, the President recently netted about US$785k selling shares at an average price of US$41.34. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.
Soleno Therapeutics Insider Transactions Over The Last Year
In fact, the recent sale by President Anish Bhatnagar was not their only sale of Soleno Therapeutics shares this year. Earlier in the year, they fetched US$37.01 per share in a -US$3.3m sale. That means that an insider was selling shares at slightly below the current price (US$41.09). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 84% of Anish Bhatnagar's holding.
Insiders in Soleno Therapeutics didn't buy any shares in the last year. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Soleno Therapeutics insiders own about US$11m worth of shares. That equates to 0.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Soleno Therapeutics Insider Transactions Indicate?
Insiders sold Soleno Therapeutics shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. To that end, you should learn about the 3 warning signs we've spotted with Soleno Therapeutics (including 2 which are a bit concerning).
But note: Soleno 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.