We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Galectin Therapeutics, Inc. (NASDAQ:GALT).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Galectin Therapeutics
Over the last year, we can see that the biggest insider sale was by Director Gilbert Omenn for US$117k worth of shares, at about US$6.03 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$3.68. So it may not tell us anything about how insiders feel about the current share price. Gilbert Omenn was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 5.00k shares for US$27k. But insiders sold 19.37k shares worth US$117k. You can see the insider transactions over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Galectin Therapeutics Have Bought Stock Recently
There was some insider buying at Galectin Therapeutics over the last quarter. Kary Eldred bought US$12k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Galectin Therapeutics insiders own about US$14m worth of shares (which is 9.5% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Galectin Therapeutics Tell Us?
Our data shows a little more insider buying than selling in the last three months. But the net investment is not enough to encourage us much. The insider transactions at Galectin Therapeutics are not very heartening. The modest level of insider ownership is, at least, some comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Galectin Therapeutics.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.