Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) insiders placed bullish bets worth US$1.6m in the last 12 months
Quite a few insiders have dramatically grown their holdings in Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Tarsus Pharmaceuticals
The Last 12 Months Of Insider Transactions At Tarsus Pharmaceuticals
In the last twelve months, the biggest single purchase by an insider was when Consultant D. Ackermann bought US$1.4m worth of shares at a price of US$13.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$15.49. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid US$1.6m for 118.40k shares. On the other hand they divested 2.31k shares, for US$39k. In total, Tarsus Pharmaceuticals insiders bought more than they sold over 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.
Tarsus Pharmaceuticals Insiders Are Selling The Stock
Over the last three months, we've seen a bit of insider selling at Tarsus Pharmaceuticals. Insiders only netted US$39k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.
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. It appears that Tarsus Pharmaceuticals insiders own 10% of the company, worth about US$42m. 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 Does This Data Suggest About Tarsus Pharmaceuticals Insiders?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Tarsus Pharmaceuticals insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Tarsus Pharmaceuticals and understanding them should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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