Investors may wish to note that the Co-Founder & Chairman of the Board of Spero Therapeutics, Inc., Ankit Mahadevia, recently netted US$87k from selling stock, receiving an average price of US$1.37. It might not be a huge sale, but it did reduce their holding size 22%, hardly encouraging.
The Last 12 Months Of Insider Transactions At Spero Therapeutics
In fact, the recent sale by Ankit Mahadevia was the biggest sale of Spero Therapeutics shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$1.45. 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. We note that the biggest single sale was only 22%of Ankit Mahadevia's holding.
In the last year Spero Therapeutics insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Spero Therapeutics Boast High Insider Ownership?
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. Based on our data, Spero Therapeutics insiders have about 1.8% of the stock, worth approximately US$1.4m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Spero Therapeutics Tell Us?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Spero Therapeutics. You'd be interested to know, that we found 3 warning signs for Spero Therapeutics and we suggest you have a look.
But note: Spero 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.