We'd be surprised if Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) shareholders haven't noticed that the Chief Medical Officer & Senior VP of Development, Santiago Arroyo, recently sold US$429k worth of stock at US$15.91 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.
The Last 12 Months Of Insider Transactions At Momenta Pharmaceuticals
Notably, that recent sale by Santiago Arroyo is the biggest insider sale of Momenta Pharmaceuticals shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$16.41. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was 100% of Santiago Arroyo's holding.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Momenta Pharmaceuticals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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 appears that Momenta Pharmaceuticals insiders own 1.7% of the company, worth about US$26m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Momenta Pharmaceuticals Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And even if we look to the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Momenta Pharmaceuticals.
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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