Investors may wish to note that the CFO, COO & Treasurer of Scholar Rock Holding Corporation, Edward Myles, recently netted US$85k from selling stock, receiving an average price of US$8.98. It might not be a huge sale, but it did reduce their holding size 19%, hardly encouraging.
Scholar Rock Holding Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chief Scientific Officer, Mo Qatanani, sold US$295k worth of shares at a price of US$18.18 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$8.30). So it is hard to draw any strong conclusion from it.
Insiders in Scholar Rock Holding didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Scholar Rock Holding insiders own about US$8.9m worth of shares (which is 1.3% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Scholar Rock Holding Tell Us?
Insiders haven't bought Scholar Rock Holding stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. 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. Our analysis shows 4 warning signs for Scholar Rock Holding (1 shouldn't be ignored!) and we strongly recommend you look at these before investing.
But note: Scholar Rock Holding 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com