Insiders were net sellers of Edgewise Therapeutics, Inc.'s (NASDAQ:EWTX ) stock during the past year. That is, insiders sold more stock than they bought.    

While insider transactions are not the most important thing when it comes to long-term investing,  we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Edgewise Therapeutics

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Alan Russell, for US$1.6m worth of shares, at about US$9.33 per share.    That means that an insider was selling shares at  slightly  below the current price (US$16.37).  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.  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.   It is worth noting that this sale was 98% of Alan Russell's holding.      Alan Russell was the only individual insider to sell over the last year.  

The chart below shows insider transactions (by companies and individuals) over the last year.  By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:EWTX Insider Trading Volume April 13th 2024

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Edgewise 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.  Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term.   It appears that Edgewise Therapeutics insiders own 5.3% of the company, worth about US$81m.  While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.  

So What Does This Data Suggest About Edgewise Therapeutics Insiders?

The fact that there have been no Edgewise Therapeutics insider transactions recently certainly doesn't bother us.      Our analysis of Edgewise Therapeutics insider transactions leaves us cautious.   But it's good to see that insiders own shares in the company.      In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Edgewise Therapeutics.    When we did our research, we found 4 warning signs for Edgewise Therapeutics (1 makes us a bit uncomfortable!) that we believe deserve your full attention.  

But note: Edgewise 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.