Some Protagonist Therapeutics, Inc. (NASDAQ:PTGX) shareholders may be a little concerned to see that the CEO, President, Dinesh Patel, recently sold a substantial US$2.8m worth of stock at a price of US$82.48 per share. However, that sale only accounted for 9.1% of their holding, so arguably it doesn't say much about their conviction.

Protagonist Therapeutics Insider Transactions Over The Last Year

Notably, that recent sale by CEO, President Dinesh Patel was not the only time they sold Protagonist Therapeutics shares this year. Earlier in the year, they fetched US$55.05 per share in a -US$2.9m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$84.79. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 14% of Dinesh Patel's holding.

Protagonist Therapeutics insiders didn't buy any shares over the last year. 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

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. It appears that Protagonist Therapeutics insiders own 1.1% of the company, worth about US$56m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Protagonist Therapeutics Insider Transactions Indicate?

Insiders haven't bought Protagonist Therapeutics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. In terms of investment risks, we've identified 2 warning signs with Protagonist Therapeutics and understanding them should be part of your investment process.

Of course Protagonist 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.