We wouldn't blame Janux Therapeutics, Inc. (NASDAQ:JANX) shareholders if they were a little worried about the fact that Tighe Reardon, a company insider, recently netted about US$1.8m selling shares at an average price of US$51.81. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Janux Therapeutics
Notably, that recent sale by Tighe Reardon is the biggest insider sale of Janux Therapeutics shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$53.41. 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 only 26% of Tighe Reardon's holding.
Insiders in Janux Therapeutics 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Janux 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 Of Janux 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. We usually like to see fairly high levels of insider ownership. It's great to see that Janux Therapeutics insiders own 9.7% of the company, worth about US$269m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Janux Therapeutics Insider Transactions Indicate?
Insiders haven't bought Janux Therapeutics stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Janux Therapeutics you should be aware of, and 1 of these is a bit concerning.
But note: Janux 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.
