Yahoo Finance Bullish Sarepta Therapeutics Insiders Loaded Up On US$13.3m Of Stock
Multiple insiders secured a larger position in Sarepta Therapeutics, Inc. (NASDAQ:SRPT) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Sarepta Therapeutics
The Last 12 Months Of Insider Transactions At Sarepta Therapeutics
Over the last year, we can see that the biggest insider purchase was by Independent Director Richard Barry for US$3.9m worth of shares, at about US$78.81 per share. We do like to see buying, but this purchase was made at well below the current price of US$124. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 143.76k shares worth US$13m. On the other hand they divested 9.10k shares, for US$1.1m. Overall, Sarepta Therapeutics insiders were net buyers during the last year. They paid about US$92.48 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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.
Sarepta Therapeutics Insiders Are Selling The Stock
The last three months saw significant insider selling at Sarepta Therapeutics. In total, insiders sold US$1.1m 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 Sarepta Therapeutics
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. Sarepta Therapeutics insiders own 4.5% of the company, currently worth about US$493m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Sarepta Therapeutics Insiders?
Insiders sold Sarepta Therapeutics shares recently, but they didn't buy any. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So we're happy to look past recent trading. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with Sarepta Therapeutics and understanding it should be part of your investment process.
But note: Sarepta 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.
