Investors may wish to note that the President of Verastem, Inc., Daniel Paterson, recently netted US$74k from selling stock, receiving an average price of US$7.16. However we note that the sale only shrunk their holding by 4.7%.

The Last 12 Months Of Insider Transactions At Verastem

Notably, that recent sale by President Daniel Paterson was not the only time they sold Verastem shares this year. They previously made an even bigger sale of -US$477k worth of shares at a price of US$8.13 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$6.60. So it may not shed much light on insider confidence at current levels.

In the last year Verastem 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Verastem

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Based on our data, Verastem insiders have about 0.5% of the stock, worth approximately US$2.8m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Verastem Tell Us?

Insiders haven't bought Verastem stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Verastem. To help with this, we've discovered 5 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in Verastem.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.