We wouldn't blame PTC Therapeutics, Inc. (NASDAQ:PTCT) shareholders if they were a little worried about the fact that Matthew Klein, the CEO & Director recently netted about US$706k selling shares at an average price of US$68.57. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.2%.

PTC Therapeutics Insider Transactions Over The Last Year

In fact, the recent sale by CEO & Director Matthew Klein was not their only sale of PTC Therapeutics shares this year. Earlier in the year, they fetched US$73.08 per share in a -US$917k sale. That means that an insider was selling shares at below the current price (US$73.31). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.8% of Matthew Klein's holding.

In the last year PTC Therapeutics 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does PTC Therapeutics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PTC Therapeutics insiders own about US$151m worth of shares (which is 2.5% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About PTC Therapeutics Insiders?

Insiders sold PTC Therapeutics shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

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.

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.