Yahoo Finance Insiders who placed huge bets on Amneal Pharmaceuticals, Inc. (NYSE:AMRX) earlier this year would be disappointed with the 10% drop
The recent 10% drop in Amneal Pharmaceuticals, Inc.'s (NYSE:AMRX) stock could come as a blow to insiders who purchased US$1.5m worth of stock at an average buy price of US$4.18 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$1.1m, which is not great.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Amneal Pharmaceuticals
Amneal Pharmaceuticals Insider Transactions Over The Last Year
The Co-Founder Chirag Patel made the biggest insider purchase in the last 12 months. That single transaction was for US$626k worth of shares at a price of US$4.25 each. That means that even when the share price was higher than US$3.18 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 350.00k shares for US$1.5m. But they sold 3.50k shares for US$14k. In the last twelve months there was more buying than selling by Amneal Pharmaceuticals insiders. 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!
Amneal Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Amneal Pharmaceuticals Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 5.4% of Amneal Pharmaceuticals shares, worth about US$52m. 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 Amneal Pharmaceuticals Tell Us?
It doesn't really mean much that no insider has traded Amneal Pharmaceuticals shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Amneal Pharmaceuticals insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Amneal Pharmaceuticals, you should check out this free report on analyst forecasts for the company.
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, but not derivative transactions.
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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.
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