Anyone interested in Spero Therapeutics, Inc. (NASDAQ:SPRO) should probably be aware that the CEO, CFO, Esther Rajavelu, recently divested US$207k worth of shares in the company, at an average price of US$2.36 each. The eyebrow raising move amounted to a reduction of 34% in their holding.
The Last 12 Months Of Insider Transactions At Spero Therapeutics
In fact, the recent sale by Esther Rajavelu was the biggest sale of Spero Therapeutics shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$2.39). 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. We note that the biggest single sale was only 34% of Esther Rajavelu's holding.
Spero 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Spero Therapeutics
I will like Spero 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 Spero Therapeutics
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$3.3m worth of Spero Therapeutics stock, about 2.4% of the company. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Spero Therapeutics Tell Us?
Insiders haven't bought Spero Therapeutics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Spero Therapeutics and understanding this should be part of your investment process.
But note: Spero 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.