Some Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) shareholders may be a little concerned to see that the COO & Chief Scientific Officer, Steven Miller, recently sold a substantial US$570k worth of stock at a price of US$14.24 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.8%.
See our latest analysis for Catalyst Pharmaceuticals
Catalyst Pharmaceuticals Insider Transactions Over The Last Year
In fact, the recent sale by Steven Miller was the biggest sale of Catalyst Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$13.35. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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
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. Catalyst Pharmaceuticals insiders own about US$90m worth of shares. That equates to 6.3% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Catalyst Pharmaceuticals Tell Us?
An insider hasn't bought Catalyst 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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Catalyst Pharmaceuticals. For instance, we've identified 4 warning signs for Catalyst Pharmaceuticals (1 is significant) you should be aware of.
But note: Catalyst Pharmaceuticals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.