Multiple insiders secured a larger position in Sarepta Therapeutics, Inc. (NASDAQ:SRPT) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Sarepta Therapeutics
The Last 12 Months Of Insider Transactions At Sarepta Therapeutics
The Independent Director Richard Barry made the biggest insider purchase in the last 12 months. That single transaction was for US$3.9m worth of shares at a price of US$78.81 each. That means that an insider was happy to buy shares at around the current price of US$80.40. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Sarepta Therapeutics share holders is that insiders were buying at near the current price.
Sarepta Therapeutics insiders may have bought shares in the last year, but they didn't sell any. They paid about US$92.48 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Sarepta Therapeutics Have Bought Stock Recently
It's good to see that Sarepta Therapeutics insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$5.9m worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Sarepta Therapeutics
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. Sarepta Therapeutics insiders own about US$337m worth of shares (which is 4.4% of the company). 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 Does This Data Suggest About Sarepta Therapeutics Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Sarepta Therapeutics. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sarepta Therapeutics. You'd be interested to know, that we found 2 warning signs for Sarepta Therapeutics and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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