We'd be surprised if Applied Therapeutics, Inc. (NASDAQ:APLT) shareholders haven't noticed that the Chair of the Board of Directors, Shoshana Shendelman, recently sold US$267k worth of stock at US$4.32 per share. On the bright side, that sale was only 1.2% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At Applied Therapeutics
In fact, the recent sale by Chair of the Board of Directors Shoshana Shendelman was not their only sale of Applied Therapeutics shares this year. They previously made an even bigger sale of -US$1.7m worth of shares at a price of US$5.39 per share. So what is clear is that an insider saw fit to sell at around the current price of US$5.27. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year we saw more insider selling of Applied Therapeutics shares, than buying. 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!
I will like Applied Therapeutics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.1% of Applied Therapeutics shares, worth about US$37m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Applied Therapeutics Tell Us?
Insiders haven't bought Applied Therapeutics stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Applied Therapeutics is showing 4 warning signs in our investment analysis, and 2 of those are a bit concerning...
Of course Applied Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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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.