Potential Eli Lilly and Company (NYSE:LLY) shareholders may wish to note that the Independent Director, Jackson Tai, recently bought US$200k worth of stock, paying US$304 for each share. Although the purchase only increased their holding by 1.4%, it is still a solid purchase in our view.
Eli Lilly Insider Transactions Over The Last Year
Notably, that recent purchase by Jackson Tai is the biggest insider purchase of Eli Lilly shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$317. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Eli Lilly share holders is that insiders were buying at near the current price.
While Eli Lilly insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Eli Lilly is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Eli Lilly
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Eli Lilly insiders own 0.2% of the company, currently worth about US$470m based on the recent share price. 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 Eli Lilly Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Eli Lilly. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 3 warning signs for Eli Lilly that deserve your attention before buying any shares.
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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