Insider Buyers Lose Additional US$63k As RAPT Therapeutics Dips To US$236m
The recent price decline of 73% in RAPT Therapeutics, Inc.'s (NASDAQ:RAPT) stock may have disappointed insiders who bought US$97.6k worth of shares at an average price of US$19.52 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$34.4k, which is not what they expected.
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 RAPT Therapeutics
RAPT Therapeutics Insider Transactions Over The Last Year
The insider Wendye Robbins made the biggest insider purchase in the last 12 months. That single transaction was for US$98k worth of shares at a price of US$20.05 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.87). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Wendye Robbins was the only individual insider to buy during the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
RAPT Therapeutics Insiders Are Selling The Stock
The last three months saw some RAPT Therapeutics insider selling. Chief Scientific Officer Dirk Brockstedt sold just US$20k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, RAPT Therapeutics insiders have about 1.9% of the stock, worth approximately US$4.5m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About RAPT Therapeutics Insiders?
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more RAPT Therapeutics stock. 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. For example, RAPT Therapeutics has 4 warning signs (and 3 which are a bit concerning) we think you should know about.
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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
