Yahoo Finance Regeneron Pharmaceuticals Insiders Sell US$26m Of Stock, Possibly Signalling Caution
Many Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.
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.
See our latest analysis for Regeneron Pharmaceuticals
The Last 12 Months Of Insider Transactions At Regeneron Pharmaceuticals
In the last twelve months, the biggest single sale by an insider was when the Executive VP and GM of Industrial Operations & Product Supply, Daniel Van Plew, sold US$9.8m worth of shares at a price of US$952 per share. That means that even when the share price was below the current price of US$1,082, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 24% of Daniel Van Plew's stake.
In the last year Regeneron Pharmaceuticals insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Regeneron Pharmaceuticals better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Regeneron Pharmaceuticals insiders own 4.0% of the company, worth about US$4.7b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Regeneron Pharmaceuticals Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Regeneron Pharmaceuticals shares in the last quarter. While we feel good about high insider ownership of Regeneron Pharmaceuticals, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in Regeneron 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 of direct interests only, but not derivative transactions or indirect interests.
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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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