Over the past year, insiders sold US$1.1m worth of Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) stock at an average price of US$11.03 per share allowing them to get the most out of their money. After the stock price dropped 31% last week, the company's market value declined by US$193m, but insiders were able to mitigate their losses.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Vanda Pharmaceuticals

The Last 12 Months Of Insider Transactions At Vanda Pharmaceuticals

In the last twelve months, the biggest single sale by an insider was when the Founder, Mihael Polymeropoulos, sold US$414k worth of shares at a price of US$11.19 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$7.43. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Vanda Pharmaceuticals didn't buy any shares in the last year. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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 appears that Vanda Pharmaceuticals insiders own 2.9% of the company, worth about US$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Vanda Pharmaceuticals Tell Us?

It doesn't really mean much that no insider has traded Vanda Pharmaceuticals shares in the last quarter. Our analysis of Vanda Pharmaceuticals insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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. You'd be interested to know, that we found 1 warning sign for Vanda Pharmaceuticals and we suggest you have a look.

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.