Viewing insider transactions for Compass Therapeutics, Inc.'s (NASDAQ:CMPX ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Compass Therapeutics
Compass Therapeutics Insider Transactions Over The Last Year
Notably, that recent sale by Vered Bisker-Leib is the biggest insider sale of Compass Therapeutics shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$4.37. 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 3.9%of Vered Bisker-Leib's holding.
Thomas Schuetz bought 306.41k shares over the last 12 months at an average price of US$2.60. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 Compass Therapeutics Have Sold Stock Recently
We've seen more insider selling than insider buying at Compass Therapeutics recently. In that time, President & COO Vered Bisker-Leib dumped US$201k worth of shares. On the other hand we note Co-Founder Thomas Schuetz bought US$145k worth of shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.3% of Compass Therapeutics shares, worth about US$35m. 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 Do The Compass Therapeutics Insider Transactions Indicate?
The stark truth for Compass Therapeutics is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. And insiders do own shares. So we're happy enough to look past some selling. 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. At Simply Wall St, we've found that Compass Therapeutics has 5 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.
Of course Compass 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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here