Large Amounts Of Insider Trading In Aprea Therapeutics Following IPO

Aprea Therapeutics Inc APRE shares cooled a bit Tuesday after getting off to a hot start on the market following an Oct. 3 IPO. The oncology biotech company, which is conducting Phase III testing, saw its stock shoot as high as $21 last week from its $15 IPO price.

The Trades

On Monday, there were several large insider purchases of Aprea stock. Most of the purchases are options being exercised, resulting in trades executed well below market price. The following are some of the noteworthy insider trades reported Monday.

• Seizinger Bernd R. (Director) Exercised 527,940 @ Avg Price: 4 cents. 
• Magni Guido (Director) Buys 6,500 @ Avg Price: $15. 
• HENNEMAN JOHN B III (Director) Buys 23,407 @ Avg Price: $3.20.
• Korbel Gregory Alan (VP of Business Dev't) Buys 64,822 @ Avg Price: 12 cents. 
• Attar Eyal C. (SVP, Chief Medical Officer) Buys 78,030 @ Avg Price: 8 cents. 
• Coiante Scott M (SVP, Chief Financial Officer) Buys 153,324 @ Avg Price: 24 cents. 
• SCHADE CHRISTIAN S (Director, President & CEO) Buys 317,085 @ Avg Price: 52 cents. 

Why It’s Important

Company insiders often have the best sense of where a company and a stock are headed.

While many Americans associate the term “insider trading” with illegal activity, company insiders are free to buy and sell shares of their own company's stock, provided they follow disclosure laws.

Illicit insider trading occurs when a company insider trades after gaining meaningful non-public information about the company, or if an insider buys or sells shares of stock without disclosing the trades via Securities and Exchange Commission filings.

Company insiders whose compensation includes shares of stock can’t be faulted for selling those shares and raising cash periodically.

Insider buying is typically considered particularly noteworthy, and traders watch closely for changes in patterns or unusual insider trading activity.

Benzinga’s Take

As if small cap biotech stocks weren’t typically volatile enough on their own, the first few months of trading for a biotech IPO can be especially volatile and unpredictable.

Aprea traders should expect plenty of noise and volatility surrounding the initial wave of Wall Street analyst coverage, the company’s first quarterly earnings report and the expiration of its lockup period.

It’s always good to see insiders buying shares of stock, but all of the buys reported on Monday happened at steep discounts to market price. Traders will get their first sense of how company insiders feel about Aprea when the lockup period expires and insider trades start happening at market price.

Do you agree with this take? Email feedback@benzinga.com with your thoughts.

Related Links:

Insider Buying Vs. Insider Selling: What Numbers Really Matter For Traders?

Why You Should Pay Attention To Insider Transactions