Yahoo Finance Insiders of Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) are up 80% on their US$2.8m purchase after Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) rose 19% last week
Insiders who bought Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$94m as a result of the stock's 19% gain over the same period. In other words, the original US$2.8m purchase is now worth US$4.9m.
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.
See our latest analysis for Tarsus Pharmaceuticals
The Last 12 Months Of Insider Transactions At Tarsus Pharmaceuticals
The insider Jason Tester made the biggest insider purchase in the last 12 months. That single transaction was for US$2.8m worth of shares at a price of US$16.00 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$28.77. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Tarsus Pharmaceuticals insiders own 23% of the company, worth about US$135m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Tarsus Pharmaceuticals Insider Transactions Indicate?
The fact that there have been no Tarsus Pharmaceuticals insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Tarsus Pharmaceuticals insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tarsus Pharmaceuticals. Be aware that Tarsus Pharmaceuticals is showing 4 warning signs in our investment analysis, and 2 of those are potentially serious...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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.
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