Solid Biosciences Insiders Sell US$823k Of Stock, Possibly Signalling Caution
A number of Solid Biosciences Inc. (NASDAQ:SLDB) insiders sold their shares in the last year, which may have raised concerns among investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Solid Biosciences
The President, Alexander Cumbo, made the biggest insider sale in the last 12 months. That single transaction was for US$315k worth of shares at a price of US$6.44 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$10.29. 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 18% of Alexander Cumbo's holding.
In the last year Solid Biosciences insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Solid Biosciences
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Solid Biosciences 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Solid Biosciences insiders own about US$9.6m worth of shares (which is 0.9% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Solid Biosciences Insiders?
It doesn't really mean much that no insider has traded Solid Biosciences shares in the last quarter. The insider transactions at Solid Biosciences are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. 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 3 warning signs for Solid Biosciences you should be aware of, and 2 of these are a bit unpleasant.
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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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.