Potential Entrada Therapeutics, Inc. (NASDAQ:TRDA) shareholders may wish to note that the Director, Peter Kim, recently bought US$123k worth of stock, paying US$13.58 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 18%.
The Last 12 Months Of Insider Transactions At Entrada Therapeutics
Notably, that recent purchase by Peter Kim is the biggest insider purchase of Entrada Therapeutics shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$14.35. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Entrada Therapeutics share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Peter Kim.
Peter Kim bought a total of 11.78k shares over the year at an average price of US$13.40. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Entrada Therapeutics Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Entrada Therapeutics insiders own about US$8.0m worth of shares (which is 1.7% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Entrada Therapeutics Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Entrada Therapeutics insiders are reasonably well aligned, and optimistic for the future. 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. For example, Entrada Therapeutics has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
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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