We'd be surprised if Abeona Therapeutics Inc. (NASDAQ:ABEO) shareholders haven't noticed that the Independent Director, Mark Alvino, recently sold US$117k worth of stock at US$4.51 per share. That sale was 41% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At Abeona Therapeutics
Notably, that recent sale by Mark Alvino is the biggest insider sale of Abeona Therapeutics shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$4.58, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 41% of Mark Alvino's holding.
In the last twelve months insiders purchased 88.76k shares for US$346k. But they sold 92.85k shares for US$411k. In total, Abeona Therapeutics insiders sold more than they bought over the last year. The average sell price was around US$4.43. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Abeona Therapeutics
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.2% of Abeona Therapeutics shares, worth about US$6.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Abeona Therapeutics Insider Transactions Indicate?
The stark truth for Abeona Therapeutics is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Abeona Therapeutics. Every company has risks, and we've spotted 6 warning signs for Abeona Therapeutics (of which 3 are significant!) you should know about.
But note: Abeona 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 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com