Anyone interested in Rapport Therapeutics, Inc. (NASDAQ:RAPP) should probably be aware that the Founder & Chief Scientific Officer, David Bredt, recently divested US$197k worth of shares in the company, at an average price of US$30.05 each. On the bright side, that sale was only 1.6% of their holding, so we doubt it's very meaningful, on its own.

Rapport Therapeutics Insider Transactions Over The Last Year

The Founder & Independent Chairman Steven Paul made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$24.97 each. That means that an insider was happy to buy shares at around the current price of US$27.66. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Rapport Therapeutics insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 81.57k shares for US$1.8m. On the other hand they divested 9.41k shares, for US$283k. In the last twelve months there was more buying than selling by Rapport Therapeutics insiders. The average buy price was around US$21.67. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Rapport Therapeutics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Rapport Therapeutics insiders own 4.6% of the company, worth about US$60m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Rapport Therapeutics Tell Us?

Insiders sold Rapport Therapeutics shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're not overly bothered by recent selling. 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.

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.