Keros Therapeutics, Inc.'s (NASDAQ:KROS) stock price has dropped 12% in the previous week, but insiders who sold US$388k in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$15.15 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Keros Therapeutics Insider Transactions Over The Last Year

The President, Jasbir Seehra, made the biggest insider sale in the last 12 months. That single transaction was for US$113k worth of shares at a price of US$16.17 each. 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$10.61. So it may not shed much light on insider confidence at current levels.

Insiders in Keros Therapeutics didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Keros Therapeutics Insiders Are Selling The Stock

The last three months saw significant insider selling at Keros Therapeutics. Specifically, insiders ditched US$56k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Keros Therapeutics insiders own about US$7.0m worth of shares (which is 3.2% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Keros Therapeutics Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. 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. For example, Keros Therapeutics has 3 warning signs (and 1 which is significant) we think you should know about.

Of course Keros 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 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.