Insiders who bought this year lost US$86k as Turning Point Therapeutics, Inc. (NASDAQ:TPTX) sheds US$102m in value
The recent 5.1% drop in Turning Point Therapeutics, Inc.'s (NASDAQ:TPTX) stock could come as a blow to insiders who purchased US$163k worth of stock at an average buy price of US$81.34 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$77k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Turning Point Therapeutics
Turning Point Therapeutics Insider Transactions Over The Last Year
The Chairman of the Board Mark J. Alles made the biggest insider purchase in the last 12 months. That single transaction was for US$163k worth of shares at a price of US$81.34 each. That means that an insider was happy to buy shares at above the current price of US$38.32. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Mark J. Alles was the only individual insider to buy during the last year.
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!
Turning Point Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Turning Point Therapeutics Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Turning Point Therapeutics insiders own about US$85m worth of shares. That equates to 4.5% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Turning Point Therapeutics Tell Us?
It doesn't really mean much that no insider has traded Turning Point Therapeutics shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Turning Point Therapeutics and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Turning Point Therapeutics you should know about.
But note: Turning Point 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, 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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