We wouldn't blame Soleno Therapeutics, Inc. (NASDAQ:SLNO) shareholders if they were a little worried about the fact that Anish Bhatnagar, the President recently netted about US$800k selling shares at an average price of US$41.54. That sale reduced their total holding by 25% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Soleno Therapeutics
Notably, that recent sale by President Anish Bhatnagar was not the only time they sold Soleno Therapeutics shares this year. Earlier in the year, they fetched US$37.01 per share in a -US$3.3m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$40.91. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 84% of Anish Bhatnagar's holding.
Soleno Therapeutics insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does Soleno Therapeutics Boast High 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. We usually like to see fairly high levels of insider ownership. Soleno Therapeutics insiders own about US$14m worth of shares. That equates to 0.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Soleno Therapeutics Insiders?
Insiders sold Soleno Therapeutics shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Soleno Therapeutics. Every company has risks, and we've spotted 4 warning signs for Soleno Therapeutics (of which 2 can't be ignored!) you should know about.
But note: Soleno 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