President and CEO at Galera Therapeutics Acquires Company Stock Options Worth 440,000 Shares

Mel Sorensen, President and CEO at Galera Therapeutics GRTX, reported a large acquisition of company stock options on February 28, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Sorensen, President and CEO at Galera Therapeutics, a company in the Health Care sector, was just awarded stock options worth 440,000 shares of GRTX. The options give Sorensen the right to buy the company's stock at $1.78 per share.

Galera Therapeutics shares are trading up 1.13% at $1.79 at the time of this writing on Wednesday morning. Since the current price is $1.79, this makes Sorensen's 440,000 shares worth $787,600.

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Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

Check Out The Full List Of Galera Therapeutics's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.