Regeneron Pharmaceuticals Insiders Sold US$26m Of Shares Suggesting Hesitancy
Over the past year, many Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Regeneron Pharmaceuticals
Regeneron Pharmaceuticals Insider Transactions Over The Last Year
The Executive VP and GM of Industrial Operations & Product Supply, Daniel Van Plew, made the biggest insider sale in the last 12 months. That single transaction was for US$9.8m worth of shares at a price of US$952 each. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$964. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 24% of Daniel Van Plew's stake.
Insiders in Regeneron Pharmaceuticals didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insiders At Regeneron Pharmaceuticals Have Sold Stock Recently
The last quarter saw substantial insider selling of Regeneron Pharmaceuticals shares. In total, insiders dumped US$26m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Regeneron Pharmaceuticals Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Regeneron Pharmaceuticals insiders own 4.2% of the company, worth about US$4.4b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Regeneron Pharmaceuticals Tell Us?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 1 warning sign for Regeneron Pharmaceuticals that deserve your attention before buying any shares.
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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.
