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Those following along with Eli Lilly and Company (NYSE:LLY) will no doubt be intrigued by the recent purchase of shares by David Ricks, Chairman of the company, who spent a stonking US$500k on stock at an average price of US$108. While that only increased their holding size by 2.9%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Eli Lilly
In fact, the recent purchase by David Ricks was the biggest purchase of Eli Lilly shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$110 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Eli Lilly share holders is that insiders were buying at near the current price.
Eli Lilly insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It's great to see that Eli Lilly insiders own 0.1% of the company, worth about US$158m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Eli Lilly Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Eli Lilly. One for the watchlist, at least! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Eli Lilly.
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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.