Market Overview

Insider Sells Allogene Therapeutics Shares

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Shares of Allogene Therapeutics Inc (NASDAQ:ALLO) moved lower by 2% from the previous closing price. A Form 4 filing filed with the SEC on Monday, June 29 showed that Tpg Group Holdings Sbs) Advisors, Inc. sold 500 shares at $44.01 on Friday, Jun 26, sold 24,904 shares at $43.27 on Monday, Jun 29, and sold 59,747 shares at $42.21 on Tuesday, Jun 30.The transaction moved the executive's stake in Allogene Therapeutics Inc. to 19,800,957 shares.

Why Insider Transactions Are Important?

While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.

Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesn't feel the stock is overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to "take some profit" and "lock in a gain."

Transaction Codes To Focus On

Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.

Transaction codes besides P or S aren't relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option.

 

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