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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in G1 Therapeutics, Inc. (NASDAQ:GTHX).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia 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 G1 Therapeutics
Chief Scientific Officer Jay Strum made the biggest insider sale in the last 12 months. That single transaction was for US$596k worth of shares at a price of US$61.00 each. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$21.34. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Jay Strum.
In the last twelve months insiders purchased 4.42k shares for US$110k. But insiders sold 10.00k shares worth US$596k. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 G1 Therapeutics Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at G1 Therapeutics. Not only was there no selling that we can see, but they collectively bought US$110k worth of shares. This could be interpreted as suggesting a positive outlook.
Does G1 Therapeutics Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 1.7% of G1 Therapeutics shares, worth about US$13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The G1 Therapeutics Insider Transactions Indicate?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn’t so positive. The more recent transactions are a positive, but G1 Therapeutics insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
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.