Some Royalty Pharma plc (NASDAQ:RPRX) shareholders may be a little concerned to see that the Director, Mario Giuliani, recently sold a substantial US$19m worth of stock at a price of US$28.93 per share. However, that sale only accounted for 2.0% of their holding, so arguably it doesn't say much about their conviction.
Check out our latest analysis for Royalty Pharma
The Last 12 Months Of Insider Transactions At Royalty Pharma
The Director, Rory Riggs, made the biggest insider sale in the last 12 months. That single transaction was for US$57m worth of shares at a price of US$32.82 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$27.37. So it is hard to draw any strong conclusion from it.
Over the last year we saw more insider selling of Royalty Pharma shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership Of Royalty Pharma
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. We usually like to see fairly high levels of insider ownership. Royalty Pharma insiders own about US$1.7b worth of shares (which is 11% 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.
So What Does This Data Suggest About Royalty Pharma Insiders?
An insider sold Royalty Pharma shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. 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. 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. For example - Royalty Pharma has 5 warning signs we think you should be aware of.
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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.