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Insiders At Olema Pharmaceuticals Sold US$9.2m Of Stock Potentially Indicating Weakness
Last week, Olema Pharmaceuticals, Inc.'s (NASDAQ:OLMA) stock jumped 11%, but insiders who sold US$9.2m worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$27.36, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Olema Pharmaceuticals
In the last twelve months, the biggest single sale by an insider was when the Chief Medical Officer, Naseem Zojwalla, sold US$3.6m worth of shares at a price of US$28.93 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$7.52. So it is hard to draw any strong conclusion from it.
In the last year Olema Pharmaceuticals insiders didn't buy any company stock. 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 Olema Pharmaceuticals
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Olema Pharmaceuticals
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. It appears that Olema Pharmaceuticals insiders own 2.7% of the company, worth about US$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Olema Pharmaceuticals Insiders?
It doesn't really mean much that no insider has traded Olema Pharmaceuticals shares in the last quarter. Still, the insider transactions at Olema Pharmaceuticals in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Olema Pharmaceuticals is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
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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