Insiders' US$16.6m Investments In Red Following OnKure Therapeutics' US$19m Dip In Market Value
Insiders who bought US$16.6m worth of OnKure Therapeutics, Inc.'s (NASDAQ:OKUR) stock at an average buy price of US$4.15 over the last year may be disappointed by the recent 13% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$12.4m, which is not what they expected.
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.
OnKure Therapeutics Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Leonard Blavatnik for US$17m worth of shares, at about US$4.15 per share. That means that an insider was happy to buy shares at above the current price of US$3.10. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Leonard Blavatnik was the only individual insider to buy shares in the last twelve months.
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!
See our latest analysis for OnKure Therapeutics
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Are OnKure Therapeutics Insiders Buying Or Selling?
In the last three months, insiders sold US$1.7k worth of shares. That's not much at all. Ultimately the overall selling isn't enough to tell us much.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 10% of OnKure Therapeutics shares, worth about US$14m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About OnKure Therapeutics Insiders?
Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in OnKure Therapeutics and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OnKure Therapeutics. When we did our research, we found 4 warning signs for OnKure Therapeutics (3 make us uncomfortable!) that we believe deserve your full attention.
Of course OnKure Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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.