Anyone interested in Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) should probably be aware that the President, Steven Hoerter, recently divested US$471k worth of shares in the company, at an average price of US$15.37 each. The eyebrow raising move amounted to a reduction of 30% in their holding.
Check out our latest analysis for Deciphera Pharmaceuticals
The Last 12 Months Of Insider Transactions At Deciphera Pharmaceuticals
In fact, the recent sale by Steven Hoerter was the biggest sale of Deciphera Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$15.95, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 30%of Steven Hoerter's holding.
In the last twelve months insiders purchased 21.00k shares for US$291k. But they sold 113.33k shares for US$1.6m. In total, Deciphera Pharmaceuticals insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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).
Does Deciphera Pharmaceuticals Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.7% of Deciphera Pharmaceuticals shares, worth about US$8.4m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Deciphera Pharmaceuticals Insider Transactions Indicate?
Insiders sold Deciphera Pharmaceuticals shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Deciphera Pharmaceuticals and understanding these should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.