We wouldn't blame MoonLake Immunotherapeutics (NASDAQ:MLTX) shareholders if they were a little worried about the fact that Jorge da Silva, the Co-Founder recently netted about US$2.8m selling shares at an average price of US$18.35. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.9%.

The Last 12 Months Of Insider Transactions At MoonLake Immunotherapeutics

In the last twelve months, the biggest single sale by an insider was when the Co-Founder & Chief Scientific Officer, Kristian Reich, sold US$3.0m worth of shares at a price of US$15.08 per share. That means that even when the share price was below the current price of US$18.02, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 6.4% of Kristian Reich's holding.

In total, MoonLake Immunotherapeutics insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does MoonLake Immunotherapeutics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. MoonLake Immunotherapeutics insiders own about US$140m worth of shares (which is 10% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About MoonLake Immunotherapeutics Insiders?

An insider sold MoonLake Immunotherapeutics shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

But note: MoonLake Immunotherapeutics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.