The fact that multiple Editas Medicine, Inc. (NASDAQ:EDIT) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Editas Medicine
In the last twelve months, the biggest single sale by an insider was when the President, Gilmore O'Neill, sold US$733k worth of shares at a price of US$9.42 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$6.72. So it may not tell us anything about how insiders feel about the current share price.
In the last year Editas Medicine 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!
I will like Editas Medicine better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Editas Medicine Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Editas Medicine. In total, insiders sold US$924k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Editas Medicine
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$2.4m worth of Editas Medicine stock, about 0.4% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Editas Medicine Tell Us?
Insiders haven't bought Editas Medicine stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Editas Medicine. At Simply Wall St, we found 4 warning signs for Editas Medicine that deserve your attention before buying any shares.
But note: Editas Medicine 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.