It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Edgewise Therapeutics, Inc. (NASDAQ:EWTX).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Edgewise Therapeutics

The Last 12 Months Of Insider Transactions At Edgewise Therapeutics

In the last twelve months, the biggest single purchase by an insider was when Independent Director Jonathan Root bought US$250k worth of shares at a price of US$16.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$23.95. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Edgewise Therapeutics insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Edgewise Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Edgewise Therapeutics Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Edgewise Therapeutics. In total, insiders bought US$500k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Edgewise Therapeutics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. It appears that Edgewise Therapeutics insiders own 1.3% of the company, worth about US$16m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.