Anyone interested in Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) should probably be aware that the Lead Independent Director, Richard Prins, recently divested US$263k worth of shares in the company, at an average price of US$52.50 each. That sale was 13% of their holding, so it does make us raise an eyebrow.
See our latest analysis for Amphastar Pharmaceuticals
Amphastar Pharmaceuticals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Michael Zasloff, for US$730k worth of shares, at about US$57.22 per share. So we know that an insider sold shares at around the present share price of US$55.85. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in Amphastar 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Amphastar Pharmaceuticals
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Amphastar Pharmaceuticals insiders own about US$213m worth of shares (which is 7.9% of the company). 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 Amphastar Pharmaceuticals Tell Us?
Insiders haven't bought Amphastar Pharmaceuticals stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Amphastar Pharmaceuticals is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Amphastar Pharmaceuticals. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Amphastar 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 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.