Investors who take an interest in Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) should definitely note that the Chief Medical Advisor & Director, Elizabeth Lin, recently paid US$16.80 per share to buy US$160k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 47%.
The Last 12 Months Of Insider Transactions At Tarsus Pharmaceuticals
In fact, the recent purchase by Chief Medical Advisor & Director Elizabeth Lin was not their only acquisition of Tarsus Pharmaceuticals shares this year. Earlier in the year, they paid US$16.29 per share in a US$297k purchase. That means that an insider was happy to buy shares at around the current price of US$17.12. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Elizabeth Lin was the only individual insider to buy shares in the last twelve months.
Elizabeth Lin bought a total of 27.91k shares over the year at an average price of US$16.35. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Tarsus Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Tarsus Pharmaceuticals
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Tarsus Pharmaceuticals insiders own about US$42m worth of shares. That equates to 7.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Tarsus Pharmaceuticals Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Tarsus Pharmaceuticals insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tarsus Pharmaceuticals. At Simply Wall St, we found 3 warning signs for Tarsus Pharmaceuticals that deserve your attention before buying any shares.
But note: Tarsus Pharmaceuticals 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, but not derivative transactions.
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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.