Sage Therapeutics, Inc. (NASDAQ:SAGE) shareholders (or potential shareholders) will be happy to see that the Chief Scientific Officer, Albert Robichaud, recently bought a whopping US$1.6m worth of stock, at a price of US$64.16. Not only is that a big swing, but it increased their holding size by 22%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Sage Therapeutics
Notably, that recent purchase by Albert Robichaud is the biggest insider purchase of Sage Therapeutics shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$68.67. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Sage Therapeutics insiders decided to buy shares at close to current prices.
While Sage Therapeutics insiders bought shares last year, they didn't sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Sage Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Sage Therapeutics
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Sage Therapeutics insiders own 1.7% of the company, worth about US$60m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Sage Therapeutics Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Sage Therapeutics insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Sage Therapeutics, you should check out this free report on analyst forecasts for the company.
But note: Sage 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.
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