We wouldn't blame KalVista Pharmaceuticals, Inc. (NASDAQ:KALV) shareholders if they were a little worried about the fact that Thomas Crockett, the CEO & Director recently netted about US$876k selling shares at an average price of US$15.01. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At KalVista Pharmaceuticals
Notably, that recent sale by Thomas Crockett is the biggest insider sale of KalVista Pharmaceuticals shares that we've seen in the last year. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$13.04. So it may not shed much light on insider confidence at current levels.
In the last year KalVista Pharmaceuticals insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does KalVista Pharmaceuticals Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that KalVista Pharmaceuticals insiders own about US$7.1m worth of shares (which is 1.2% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The KalVista Pharmaceuticals Insider Transactions Indicate?
Insiders haven't bought KalVista 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. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. 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. Case in point: We've spotted 4 warning signs for KalVista Pharmaceuticals you should be aware of, and 1 of these is potentially serious.
Of course KalVista Pharmaceuticals 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.